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How I repaid my debt to make the most of an Gig Economy

(image: https://burst.shopifycdn.com/photos/woman-smiles-sitting-in-sunny-window.jpg?width=746&format=pjpg&exif=0&iptc=0)Advertiser disclosure You're our first priority. Every time. We believe that every person should be able to make sound financial decisions without hesitation. And while our site doesn't contain every company or financial product on the market however, we're confident that the advice we provide as well as the advice we provide and the tools we develop are impartial, independent easy to use and free. So how do we make money? Our partners pay us. This could influence the types of products we write about (and the way they appear on our website), but it in no way affects our suggestions or recommendations that are based on many hours of study. Our partners do not promise us favorable reviews of their products or services. .

How I Repaid Debt: Making the Most of a Gig Economy

By Amrita Jayakumar Writer The Washington Post Amrita Jayakumar is a former special assignments reporter for NerdWallet. She also wrote a syndicated column on millennials and money. The column also covered personal loans as well as consumer credit and debt. Prior to that, she was an editor at The Washington Post. Her work was published in newspapers such as the Miami Herald and USAToday. Amrita holds a master's diploma in journalistic studies from the University ofMissouri.

Published Feb 5, 2019 9:11 AM PST

Editor: Kathy Hinson Lead Assigning Editor Personal finance, credit scoring, debt and money management Kathy Hinson leads the Core Personal Finance team at NerdWallet. Prior to joining NerdWallet, she worked for 18 years with The Oregonian in Portland in roles including copy desk chief and team editor and designer. Her previous experience included news and copy editing for various Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor's in journalism and mass communications from the University of Iowa.

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In this series, NerdWallet speaks to individuals who have beaten debt by combining commitment, budgeting and clever financial decisions. The answers have been edited for clarity and length.

Kara Perez has never had a full-time job. The 30-year-old entrepreneurial entrepreneur living in Austin, Texas, juggled multiple part-time jobs in her 20s, from catering to the nannying industry to coaching high school lacrosse.

Perez was a 2011 graduate with the English degree, and over 25,000 dollars in loan debt. Three years into "adulting" with no job offers coming her way, she knew she could not afford to live with debt forever. "I realized that no one can save me. I need to rescue myself from this life I'm living," she says.

Perez decided to make the most of her gig economy life and kicked things into high gear, juggling five jobs and working 7 days a week. Every dollar she made toward the debt she incurred.

Now debt-free, Perez runs her own business named which is a financial education and event company that teaches women how to manage their finances. She shared her highs and lows with NerdWallet and her tale might inspire you to .

What was your debt and salary when you started?

I finished my degree in 2011 with less than $25,000 spread over five distinct loans. When I was really committed to paying off debt] in 2014, I only had $18,000 remaining and had earned $18,423.

How did you get in the position of being in

I attended my first choice college, Wesleyan University. I come from a single-income household, and taking the loans was always a part of my plan.

What triggered your decision to pay off your debt?

It was a bit depressing watching everyone around me go on with their lives and feeling as if I was drowning. I was mostly crying and frightened. I was applying to jobs, but had not been employed. I was only three years out of school and working as a part-time caterer, and 10 hours per day as an office receptionist at the gym.

My friends were traveling, getting actual jobs, or even promotions and I was left behind.

(When I was first studying the basics of money, I was required to get a student loan over six month, because I couldn't pay for the loan.

What steps did your take?

Two things I did I cut down everything possible within my budget, and I started looking for work. I drove a van on the high school team golf. I was a freelance writer for $12 an hour on small blogs and managing social media on a freelance basis.

I also got crazy frugal. I would bring the leftovers of my catering job and eat those instead of spending money on groceries some weeks.

(Perez had multiple roommates at the time]. My roommates were among my best acquaintances, but they all came from wealthy families with no debt. Everyone was very accommodating My friends would often return to dinner at home instead of making me go out for dinner.

I'm still frugal -- I have a partner and a roommate, and I don't eat out often.

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That must have been a hard task to balance.

I worked five different part-time jobs, and often had to work seven days a month. I was exhausted by the end of it however, I was extremely proud of myself.

Do you have any suggestions on using the debt avalanche method for paying your loans.

There was one Federal loan with a rate of 6.8%; that was my highest rate of interest. [ focuses on the debt with the highest rate of interest.The loan with the highest interest rate. I made any additional payments towards that debt and I made the minimum payment on everything else.

Did your income change over the time?

Catering and the social media tasks I worked on was hourlywork, and I requested more hours. I also bargained for increases in my catering and non-profit jobs, which was helpful. I went from $12 an hour as a caterer to $15.50 over the time of the year. In 2015 (the year in which she paid off her debtI earned $32,249.63.

What would you have done differently?

When I look back, the main thing I wish I had done was to invest into my retirement accounts in combination with the repayment of my debt. I didn't start investing until afterwards and that was the time when my money could be growing during the bull market.

What are your goals now?

I'm a business owner and work full-time. I'm also a super-saver; I want to build up enough assets so that work as an option. Last year , I managed to save 70% of my net income by using a an .

How do you get rid of your personal debt

Make a budget to ensure that you can put money towards debt, while also saving for emergencies and tuck in some money to play. For this purpose, we like the , in which your spending is split between wants, needs and savings, as well as the repayment of debt.

The debt avalanche technique that Perez used is a more efficient method of paying off debt since you reduce interest costs, however for those who want to win quickly it is also possible to try the and pay off the debt with the lowest amount first.

As Perez states, this is something that can be accomplished and should be part of repayment of debt.

Photo by Shane Henderson.

About the writer: Amrita Jayakumar is a former writer for NerdWallet. She has previously worked for The Washington Post and the Miami Herald.

In a similar vein...

Dive even deeper in Personal Finance

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Credit One Credit Cards: Confusing for Consumers

Advertiser disclosure You're our first priority. Each time. We believe that every person should be able to make sound financial decisions without hesitation. Although our site doesn't feature every company or financial product in the marketplace however, we're confident of the guidance we provide, the information we provide and the tools we develop are impartial, independent simple, and free. How do we earn money? Our partners pay us. This can influence the products we write about (and the way they appear on our website) However, it in no way affects our recommendations or advice which are based on hundreds of hours of research. Our partners cannot promise us favorable ratings of their goods or services. .

Credit One Cards from Credit One: Confusing for consumers

Are you suffering from bad credit and confused by Credit One credit cards? The problem isn't with you.

by Ellen Cannon Ellen was an ex-credit card writer at NerdWallet. She wrote about personal finance issues for over twenty years for Bloomberg and Bankrate.com.

Updated Nov 20 2020

Editor: Paul Soucy Lead Assigning Editor Credit scoring, credit cards Personal finance Paul Soucy has led the Credit Cards content team at NerdWallet since 2015. He worked as an editor at USA Today, The Des Moines Register and the Meredith/Better Homes and Gardens family of magazines for more than 20 years. He also established a profitable freelance writing and editing practice that focuses on personal and business finance. He was editor of the USA Today Weekly International Edition for six years and won the top distinction of the year from ACES: The Society for Editing. He holds a bachelor's in journalism and a Master of Business Administration. The family lives in Des Moines, Iowa, with his fiancée, his two sons, and the dog named Sam.

Many or all of the products featured here are provided by our partners who pay us. This influences which products we write about and the location and manner in which the product is displayed on a page. However, this does not affect our assessments. Our opinions are entirely our own. Here's a list and .

This page is not up to date.

Credit One has significantly overhauled its credit card offerings and its policies since this article was written. We're currently working on an update.

The most appropriate word for describing the cards provided by Credit One is confusing .

When you start the application process it's difficult to know what kind of card you're eventually going to get -- including important details such as rates, fees and rewards, or even if you get a .

When you send in a payment in time, you don't know whether it will be credited to your account soon enough so that you don't pay a late charge. The card issuer typically takes a week to process payments however, many cardholders experience problems paying online, as indicated by the report the Credit One made an inquiry to Consumer Financial Protection Bureau and state regulators.

The credit card posted on the site of the issueran important source of information about every card -is a general statement designed "for solely informational purposes" on Credit One. It isn't possible to read the exact terms of your credit card until you are able to qualify for the card you want.

The issuer's name and logo are like those of the well-known issues Capital One, which has caused some customers to believe they were applying for a credit card issued by the latter.

Credit One markets credit cards for people with less-than-great credit. To defend itself, the issuer says that in order to provide credit cards to as many subprime customers as they can, it has to do things in a different way than what you will find on cards for higher-credit consumers. True, but the confusion is real, so beware and be careful when applying for.

Credit One offers three types of cards:

Credit One Bank(r) Cash Back Rewards Credit Card

Credit One Bank(r) Platinum Visa(r) for Building Credit

Applications Prequalification is all about

Many credit card issuers allow the possibility of . Prequalification is when you submit certain information and then the issuer conducts an instant check to determine whether you're likely approved for a card. Prequalification does not affect your credit scores. Only an actual credit application results in a "hard inquiry" which could knock points off your score. Prequalifying doesn't guarantee that you'll eventually be granted credit. It's similar to a "soft yes."

Prequalification is optional with most issuers, but it's an integral part to an Credit One application process. Prequalification is required to know the specific costs, rates, and rewards structure of the card you're applying for. Once you see those conditions, you have to decide whether to apply and if so, you will be subject to a hard inquiry. The application review is deeper than the "prequal" exam, which means you may still be denied, or you could be accepted for a different terms than what you saw following prequalification.

>> MORE:

Why are they doing it in this manner?

Credit One claims that this prequalification procedure is designed to protect consumers who are subprime, and who are the least likely to lose points off their credit scores.

In this case, let's say that an issuer offers three cards with annual charges that range from $99 to $45 or zero. A person who has bad credit might qualify for the $99 card but not for the other twohowever, they'd likely apply for the $0 card first, then the $45 card, and then the $99 card as the last option. Their credit score will suffer the impact of three applications, rather than just one.

Credit One, by contrast may offer one card with the possibility of a dozen combinations of rewards, fees and rates. The application process is one-time, and the issuer approves the terms of your application based on your creditworthiness. So there is a benefit, but there's also another hurdle to go through. And you won't know the terms you're receiving (or likely to receive) until you've already begun the application process in which case you may be more likely to not have to make a bailout.

Rewards: Wait and watch

Terms and Conditions stipulate that based the creditworthiness of your score, you may be eligible for one of six cash-back rewards programs. These are the options:

Credit One Bank(r) Cash Back Rewards Credit Card and Credit One Bank(r) Platinum Visa(r) for Building Credit

Cash back of 1% on food, gas mobile phone service, internet service, cable and satellite TV services.

Cash back of 1% on fuel, groceries and dining out, mobile phone service, internet service, cable and satellite TV service.

Cash back of 1% on eligible purchases.

5% cash back the first $5,000 for combined gas, groceries, mobile phone service, internet service, as well as satellite and cable TV as well as 1% cash back rewards on all other purchases.

NASCAR(r) Credit Card from Credit One Bank(r)

Cashback of 1% on car and gas purchases and double the cashback on NASCAR.com purchases.

Cash back 1% on all purchases and double money back when you make NASCAR.com purchases.

The bottom line is that you won't know how you'll earn cash back until you have your card.

Rewards are automatically redeemed as credits to your statement each month, which means that part is fairly straightforward.

Interest rates: They're OK

The interest rates cited in the "for informational purposes only" disclosure ranged from 19.74 percent to 25.74% as of August 2018. If you're in the middle or have limited credit, the rates that you'll be charged on any card as well as loan will be high. Rates at Credit One's are comparable with those on typical credit cards designed for bad credit.

Annual fees: Make a guess

Like other characteristics of Credit One cards, the annual cost you pay remains a mystery until the issuer has you qualified for a card. The annual cost for the initial year is "between $0 to $75." For the second year and beyond, the range increases to $0 to $99. Following the initial year, the annual fee could be charged by monthly instalments. Or it might not.

Some Credit One credit card agreements -- "real" the terms and conditions which ultimately apply to cardholders -- are contained in . At the time of writing, in August 2019, the agreement outlined 21 different combinations of APRs annual fees, and other features. Also, the one that applies to you will be made public only once you qualify for a card.

Nerdy Tip

For some Credit One cardholders, the annual fee is billed in monthly installments, rather than all at once. This means that they will have a bill to pay each month even when they've not been using the card. This, in turn, increases the chances of missing payments or making late payments, especially considering the problems many cardholders report with having their payments credited in a timely manner which is discussed further below.

Here are a few other charges you may have to pay (we use the word "might" because the "for informational only" terms may be different from the terms on the card you're ultimately authorized for):

Authorized user: $19/year; authorized user must be 15 years old

Foreign transaction fee: 3% (minimum $1)

Cash advance: $5, or 8 percent of each money advance, which is greater, or $10 or 3percent of every money advance, or whichever higher.

Late payment fees: up to $37

Returned payment fees: up to $35

Fee for increasing credit limit from between $0 and $49

Fee for duplicate monthly statements The fee is $10.

Receipts for sales receipts for $6

Card replacement Card replacement: $25

Balance transfer fee 5 percent or 8 percent of the balance transferred whichever is greater (if the card allows transfers in any way)

Grace period: Who is sure?

For most credit cards, when you pay off your account in full each month, you automatically get an -- that's you'll not be charged any interest on purchases until your next pay-day. Make sure to pay in full every month, then, and you'll never be charged any interest.

For the Credit One cards, however it's impossible to tell in advance whether you get a grace period. In the "for informational purposes only" conditions the card's terms include a section about "paying an interest." It starts by saying "If your Account is subject to grace period Grace Period ..." That's an enormous "if." It goes on to say that when your account is not subject to a grace period, you'll be charged interest on each purchase up until the point it's posted to your account. Like most important information about Credit One cards, you won't know whether you get any grace periods until you apply. Of 31 card agreements spelled out by Credit One as of August 2018, about half included a grace period.

Making payments: Confusion reigns

A NerdWallet investigation that was published in October of 2018 discovered thousands of complaints about Credit One that, because of an unintended loophole in the law of the United States was not apparent to customers. The issue of payment is frequently mentioned in the complaints as well as in posts made on other forums.

Customers report sending in a payment before the due date only to see Credit One fail to process the payment until it was "late." In other instances, the customers weren't able to pay via credit card on the Credit One website and were forced pay via mail or phone, resulting in additional fees.

Credit One declined to comment on the findings of the investigation, but its stated policies on processing payments seem to confirm the allegations. The majority of credit card companies will make a payment available to a cardholder's account immediately. Credit One says it will hold your payment for several days unless you chip in the equivalent of $10 to have it processed within a day.

When will your credit card be creditable?

Like all credit cards, the balance on your Credit One card is made from your purchases as well as cash advances (if any) plus interest, as well as any fees applied. The minimum amount to pay for Credit One cards is 5 percent of the balance. For most credit cards, the minimum payment is anywhere from 1% to 33% of the balance.

After one billing cycle, Credit One cardholders may contact Customer Service and choose their own due date as long as it's within six days of the original date. Cardholders may choose a different due date once every six months.

It appears it is the case that Credit One cardholders have to be extra vigilant how they pay their monthly payments. The "FAQs" section on the site says that you have two choices for making your payment: "Standard Payment" and "Express Payment." From there, it gets tricky:

If you select Standard Payment, in accordance with the information in this FAQ "your money will be available within five (5) working days, and you can only make payments through your Bank Account." Five business days is a long time. If your due date falls on the 15th of the month, and for a particular month, that 15th day falls on a Saturday. To avoid a late charge you'll need to make your payment by the 7th of that month (a Friday) in order to ensure that your payment will be processed within the "about five (5) business days" timeframe. If you didn't pay eight days early that is, you could be "late."

If you select Express Payment When you make an Express Payment, your "funds will become available sooner (usually on the next working day)." The cost for an Express payment is $9.95.

The wording Credit One uses is peculiar. We've not seen an agreement for credit cards with specific language about when "funds will become available." This type of language typically applies to bank account deposits, so we don't know what it refers to in this instance. We're assuming it means when the payment will be posted onto your credit card.

When does your available credit renew?

But wait, there's more: Every one of the 21 card agreements in the "real Terms and Conditions" document include this section:

If an amount of payment is less than the principal amount due on your Card Account, new credit will be made available (subject to the credit limit) however, only after 12 calendar days following our receipt of the payment.

This seems to indicate that no matter when you pay for your loan -- on time, late, Standard, Express -- you can't access your total available credit line for nearly two weeks following the payment. Say your credit line is $500 and you're at the limit. You pay off your balance, but you're not able to utilize your credit card for 12 more days.

To get clarification to clarify the issue, we attempted to call to the "Application Information" number listed by Credit One however, we could not get past the first branch of the phone tree. That's because to ask a question about applying for a Credit One card, you must enter the 16-digit number of your Credit One card.

Consumer complaints

The Credit One cards are issued by Credit One Bank of Las Vegas which is a subsidiary to Sherman Financial Group, a private company based within Charleston, South Carolina.

In addition to the numerous complaints to government agencies uncovered by NerdWallet payments issues are common in complaints regarding Credit One credit cards on the site. A lot of reviewers have reported that they tried to pay the bill on the internet, but the Credit One website was not functioning. Or they made the payment, but it wasn't debited from the account in time and resulted in a late fee. There are more than 1,000 complaints about the company along with its support for customers Consumer Affairs.

Complaints about Credit One on also touch the customer service as well as billing and payment issues. Of the 129 reviews on Yelp at the time of Feb. 2017, 110 of them gave Credit One one five stars.

The Better Business Bureau has not awarded Credit One a rating. Of 112 reviews as of February 2017 on the site from the Southern Nevada BBB Three reviews were classified positively (although the tone of one review was clearly negative) three were classified as neutral , and the remainder as negative. Of the 783 complaints that were reported on the site, 574 were identified as related to billing or collection, which includes payment problems.

Credit protection: Expensive

Another benefit touted as a benefit by Credit One is its "Credit Protection Program." It's an optional program that will waive the minimum amount due for six months in the event that the card holder "involuntarily" is laid off or disabled. The cost of this service is 96 cents for every hundred dollars of balance to be paid. You pay this every month after you enroll. If, for instance, you have a balance of $500 one month and you're enrolled in the program, it costs you $4.80 for the month; and if your balance for the following month is $400, you'll be charged $3.84 in that month and so on.

When you sign up for the program, you'll have to go through an initial 30-day period of waiting before you can activate the coverage. When you activate the program, your account will be closed and you can't use the card; the minimum amount of payment is waived however, interest will accrue.

Additionally, Credit One has the right to cancel your enrollment if your account is 60 days late or if your balance is more than 20% over the maximum credit amount, Credit One "no longer is the owner of the account" you've committed fraud, or you're in one the Credit One Bank's debt management programs.

Other features: Excellent

Since they are cardholders, they get Visa insurance for travel accidents and car rental collision damage waiver insurance. Additionally, the cards come with Visa zero fraud liability, along with the Terms and Conditions inform cardholders to notify any unauthorized charges within a few hours. While federal law limits cardholder liability to $50 for charges that are not authorized and Visa zero fraud liability is a guarantee that Visa zero-risk liability guarantees you won't be responsible for charges that are fraudulent.

Credit cards are free scores, but you can obtain your credit score for free almost everywhere these days -- . Some credit card issuers offer you a score for free even when you're not a cardholder.

You can choose among a range of options (23 for the rewards card and 20 for the rebuilding credit card) to "personalize" your credit card, but you will have to pay a fee for that option. The fee isn't disclosed in the terms and conditions available on the site.

Alternatives Better alternatives: Many

Considering the opaque terms and other disadvantages associated with Credit One cards, you may wonder why people are so eager to apply for the cards. One answer might be that consumers think the application is for a line from Capital One. That logo, which is swooshy, from Credit One actually predates Capital One's, but there's still confusion on the market. Customers who have complained via the Consumer Affairs website mentioned this problem frequently.

Credit One cards are designed to those with poor credit scores, however, better alternatives are available for people who have good credit or . Major issuers provide secured credit cards with more favorable terms, less fees and guaranteed grace periods. Secured cards require a security deposit of $200-$300. Getting that money together can be a challenge to some people, however keep in mind that you will get this money back when close the account or upgrade to a normal unsecured card. The charges paid to you by Credit One are not refunded.

For example, the card offers cash back of 2% of up to $1000 on food and gas each quarter, and 1 percent cash back on all other purchases. Plus, after you have maintained your credit card in a responsible manner for seven months, Discover might review the card in the hopes of making it an unsecure card. On top of that, its annual fee is zero dollars .

You might also qualify for a genuine Capital One card, the . It is possible to get a 200 credit line with a minimum deposit of $49, $99 or $200, and you can pay the deposit in installments before activating your account. You could be able to access a larger credit line without having to put more money down , if you pay on time for as little as six months. Also, there's no annual charge.

If your credit is average or fair, you could qualify for the . The card that is not secured offers unlimited 1.5% cash back on purchases, with a minimal annual fee.

When credit is limited the consumer may make poor decisions, such as applying for credit with a Credit One credit card without conducting their research. Look around, and you can find better choices that have conditions and terms that are clearly spelled out.

About the author: Ellen Cannon is a former NerdWallet writer covering credit cards. She was a journalist as well as an editor for Bloomberg as well as Time Inc.

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Varo and. Chime: Which Is Better for You?

Advertiser disclosure You're our first priority. Everytime. We believe that every person should be able to make sound financial decisions with confidence. While our website does not include every company or financial product that is available in the marketplace however, we're confident that the guidance we offer as well as the advice we provide and the tools we develop are impartial, independent easy to use and cost-free. So how do we make money? Our partners compensate us. This could influence which products we review and write about (and where those products appear on our site) however it doesn't affect our advice or suggestions which are based on hundreds of hours of research. Our partners cannot promise us favorable review of their services or products. .

Varo Vs. Chime: Which Is More Suitable for You?

Varo and Chime both have high rates of interest on savings accounts, but their services and products have some distinctions.

By Chanelle Bessette, Lead Writer/Spokesperson Banking, checking accounts, Cash Manager Accounts Chanelle Bessette works as a personal financial writer at NerdWallet that covers banking. She has previously worked for Fortune, Forbes and the Reno Gazette-Journal. She is also an ambassador for the banking team, and her expertise has been published throughout The New York Times, Vox and Apartment Therapy.

Updated May 6, 2022

Editor: Sara Clarke Assistant Assigning Editor | Banking Sara Clarke is a Banking editor at NerdWallet. She was editor and project manager in newsrooms for over two years, including most recently at U.S. News & World Report. She managed projects such as The U.S. News education rankings as well as The Best States rankings. Sara has been featured as a guest on SiriusXM Business Radio and iHeartMedia's WHO Newsradio and has been quoted on The Salt Lake Tribune, The St. Paul (Minnesota) Pioneer Press and other publications. She lives close to Washington, D.C.

Many or all of the items featured on this page are provided by our partners who pay us. This affects the products we review and the location and manner in which the product appears on a page. But, it doesn't affect our opinions. Our views are our own. Here is a list of and .

Varo and Chime both offer similar products, but however there are some differences. Varo has a function as a bank while Chime is a neobankwhich is an online-only financial service firm that works with a bank to offer account insurance.

Here's how the two companies stack up against one another.

Snapshot Comparison

Checking your account

There is no monthly maintenance charge or minimum balance requirement for either Varo and Chime.

Varo and Chime both have deposits direct that are made early (up to two days early).

Deposits of cash in Varo and Chime could be pricey however money deposits made from Walgreens are free when you use Chime.

Savings account

With Varo, customers can earn up to 5.00% per year on the balances up to $5,000, provided certain conditions are fulfilled. Alternately, customers can earn 3.00% APY without meeting the conditions, or on balances of more than $5,000.

Chime offers 2.00% APR on their account with a High Yield Savings account.

ATMs, overdrafts and customer service

Chime's SpotMe(r) overdraft service lets customers to overdraft up to $200 at no cost if they meet certain conditions for their account.

Varo doesn't allow overdrafts, but it has an advance cash program.

Varo customers have access to more than 55,000 fee-free Allpoint ATMs.

Chime customers can access more than 60,000 cost-free MoneyPass, Allpoint and Visa Plus Alliance ATMs.

Varo and Chime are both online only and do not have branches.

Varo and Chime both have excellent mobile app ratings.

Choose Varo if:

You want a stellar rate of interest on savings and will be able to reach that goal.

Choose Chime if

You want a strong rate of interest on savings, and an overdraft option that is flexible.

Checking

NerdWallet's ratings are determined by our editorial team. The scoring formulas consider many data points for every financial product or service.

at Varo Bank, Member FDIC

Varo Bank Account. This Varo Bank Account has no fees for monthly or minimum requirement for balance. In addition, customers can access The Allpoint ATM network which has more than 55,000 ATMs for free where customers can withdraw cash. However, depositing cash is more complicated; Varo customers must go to an Green Dot retailer such as Walgreens or Safeway and may be charged a charge of up to $5.95. Customers are also able to receive their paychecks up to two days early with direct deposits.

NerdWallet's ratings are made by the editorial staff. The scoring formulas take into account several data points associated with each financial service and product.

Chime spending account. Chime does not have monthly charges or require a minimum balance on its Spending Account. Chime also offers a savings program where customers can round each purchase to the nearest cent, and then save the difference. Additionally, Chime customers can make free withdrawals from more than 60,000 nationwide ATMs. Chime belongs to the Green Dot network, so customers can deposit cash at certain retailers for a fee or at Walgreens for free.

Get more details from Chime

Chime states: "The retailer that receives the cash is accountable for the transfer of funds for deposit into the Chime Account. Account. The fees for cash deposit may apply for retailers other in addition to Walgreens."

"Round Ups" automatically round up debit card purchases to the nearest dollar. You can then transfer the round up out of Chime Checking Account to your savings account. Chime Checking Account to your savings account."

"Early accessibility to funds from direct deposits depends on the time of receipt of the payment file by the payee. We generally make these funds available the day that the payment file is received, that could be up to 2 days earlier than the date for the scheduled payment."

"Out-of-network ATM withdrawal charges may be applicable, but not at MoneyPass ATMs located in 7-Eleven, or at any Allpoint as well as Visa Plus Alliance ATM."

Savings

Varo Savings Account. Customers start at a baseline of 3.00 percent APY, however they can earn 5.00 percent on up to $5,000 if they deposit at least $1,000 in direct deposits per month and maintain an active check (Varo Bank Account) and savings balance at the close of the month. Varo offers two savings plans: one lets customers withdraw part of the direct deposits into their checking account and transfer funds into their savings. Another program allows customers to save upon making purchases. Varo will round your purchase up by the closest dollar. Then, transfer the change to an account for savings.

Chime High Yield Savings. Chime's free savings account has an 2.00% APY , as provided you maintain a balance of at the minimum of $0.01. Chime also offers two automated saving programs. One is a roundup plan that allows purchases using a checking account debit card and a program that saves 10 percent of direct deposits of $500 or more from your checking account to the savings accounts. Be aware that a Chime Checking Account is necessary to qualify for savings Account.

Get more information from Chime

Chime states: " The Annual Percentage Yield ("APY") for the Chime Savings Account fluctuates and can be changed at any time. The stated APY will be in effect on October 25 2022. No minimum balance required. Must be able to keep $0.01 saved to be able to make interest. "

"There's no cost for the Chime Savings Account. The fees for cash withdrawals and third-party charges may apply for Chime Accounts with Checking Accounts. You need an account with a Chime Checking Account to open an account with Chime Savings. Chime Savings Account."

Experience in banking

Varo Chime and Varo Chime are online-only, which means you're out of luck if you prefer in-person support. However, Varo has extended weekday and weekend phone support hours and ways to contact customer service via email and Twitter, and Chime is accessible via chat, email and the phone 24 hours a day, and on Twitter.

Varo and Chime also have high mobile app ratings in the Google Play and App Store marketplaces.

Overdrafts

Varo. Varo does not allow overdrafts to occur: If a customer tries to perform a transaction which would create a negative balance in their account, Varo refuses the transaction. If you're in need of extra time between paydays, you can use Varo Advance. Varo Advance program, which lets you get an advance that can be up to $100, with an amount of $5.

Chime. Chime doesn't charge overdraft fees. Instead, it offers an overdraft program called SpotMe(r) that allows customers can borrow up to $200 as long as they deposit at minimum $200 in direct deposits each month.

See more information from Chime

Chime claims: "Chime is a financial technology company and not an institution of banking. Banking services provided through The Bancorp Bank, N.A. or Stride Bank, N.A. Members of the FDIC."

"Chime SpotMe is an optional service that requires only a one-time deposit of $200 or more in qualifying direct deposits to Chime Checking Account. Chime Checking Account every month. The members who are eligible can overdraw their account to the amount of $20 for debit card purchases and cash withdrawals at first, but may be later allowed to withdraw more of up to $200 or more based on your Chime Account past history Direct deposit frequency, amount, spending activity as well as other risk-related variables. Your limit will be displayed to you in the Chime mobile app. You will receive notice of any modifications to your limit. Your limit may change at any point, at Chime's discretion. Although there are no overdraft fees, there may be out-of network or third-party charges associated to ATM transactions. SpotMe does not cover non-debit-card transactions, which includes ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. Check out the these Terms and Conditions."

About the writer: Chanelle Bessette is a personal finance writer for NerdWallet writing about banking. She specializes in cash management and checking accounts.

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2nd Chance checking accounts in the U.S.

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Second Chance Accounts for Checking in the U.S.

Second chance checking can be a viable option in the event that you've been denied an account due to a bad credit history. The accounts are available in every state.

by Spencer Tierney Senior Writer | Certificates of deposit and ethical banking, as well as banking deposits Spencer Tierney is a consumer banker at NerdWallet. He has been writing about the personal financial sector since, with a focus on certificate of deposit, as well as other banking subjects. The work he has written for him was covered by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among other publications. The location of his work is Berkeley, California.

and Chanelle Bessette as Lead Writer/Spokesperson. Banking, checking accounts, cash management accounts Chanelle Bessette is a personal finance writer at NerdWallet that covers banking. She was previously employed at Fortune, Forbes and the Reno Gazette-Journal. She also serves as a spokesperson for the bank team. Her expertise has been published in The New York Times, Vox and Apartment Therapy.

Updated Mar 3, 2022

Editor: Carolyn Kimball Assigning Editor - Banking | Los Angeles Times, San Jose Mercury News Carolyn has been employed in newsrooms across the nation as a reporter and editor. Her passions encompass personal finance, Sci-Fi books and absurd Broadway musicals.

The majority or all of the products featured here come from our partners who pay us. This influences which products we review and where and how the product appears on the page. However, it does not affect our assessments. Our opinions are entirely our own. Here is a list of and .

If you've had the unfortunate experience of being refused a checking account due to previous problems with banking -- like a bank account being closed due to unpaid overdraft fees A second chance check could offer you another shot in the banking world.

>> Ready to review accounts? Go ahead and click

What is second chance checking?

A serious banking issue could land you on a list held by the consumer report agency ChexSystems. Banks look at ChexSystems or other sources prior to approving new accounts -- and having a shaky background in banking due to bounced checks, fees not paid or account closures make it less likely you'll be approved.

Some credit unions and banks offer "second chance" checking accounts for people who are in this type of situation. These accounts are able to help to rebuild their bank histories, but they don't have all the features that are available standard checking accounts.

What are the pros and cons of second chance checking?

The second chance accounts usually include monthly charges that cannot be waived, and they usually have higher requirements than standard checking accounts. This includes the setting up of direct deposit or completing a money management class. You typically can't enroll in an overdraft programbecause the reason for having an account with a second chance is to prove that you are able to avoid excessive withdrawals.

Checking accounts with these types of accounts can help improve your banking history however they aren't able to help rebuild credit. Consider an secured credit card.

Despite their limitations second chance checking accounts often beat alternatives, such as cash-on-check services. These can come with costly transactions and fees for balances however, they may not have useful features such as online banking.

If you are able to stay clear of the negative effects of negative balances or fees, many second chance checking accounts let you upgrade to a regular checking in six months to a year.

Are you interested in exploring an alternative option? Take a look at our list of the

Making a second attempt at a checking account

The most effective second chance accounts include:

No or low monthly costs.

There is no minimum balance requirement.

Services include the use of debit cards, internet bill payment with unlimited write-on check privileges- for no cost.

A few limitations, like monthly or daily maximum transaction amounts.

Second chance checking accounts have these options. There are some that charge monthly fee of up to $20 and do not issue the debit or check to those who have accounts. Make sure you know the fees and other requirements prior to applying.

National second chance bank

A few banks and financial firms supported by banks offer second chance checks across the country:

(account name: Spending Account, available online)

(account account name is GoBank account name: GoBank. It is available on the internet as well as at Walmart retail stores).

(account name: Essential Checking, available online).

(account name: Bank Account, available online)

(account Name: Clear Access Banking, available in 39 states and Washington, D.C.).

Major banks rarely offer second chance checking, but some community banks and credit unions have these services under different names, such as Opportunity Checking and Fresh Start Checking.

If you aren't able to find one on the list below, see if your community is part of the Bank On program. This is a program that several communities have joined which lets city governments and local banks collaborate to assist those who are trying to return to the banking system. Another option is to consider a prepaid debit card with strong services and low costs.

Compare second chances for checking accounts

NerdWallet's ratings are determined by the editorial staff. The scoring formulas take into account several data points associated with each financial service and product.

GoBank

Monthly fee: $8.95 (unless the fee is waived).

Overdraft fee The amount is not a problem.

Special feature : Up to 2 day early direct transfer.

The NerdWallet ratings are made by our editorial team. The scoring formulas are based on many data points for each financial product and service.

at Varo Bank, Member FDIC

Varo

Monthly cost No fee for the month.

Overdraft fees : None.

Special feature : 55,000 free ATMs.

The NerdWallet ratings are made by our editorial team. The scoring formulas are based on several data points associated with each financial product and service.

LendingClub Essential Checking

Monthly fee : $9.

Overdraft fees : $5.

Special feature : Possible to change to rewards checking within one year.

Regional and state-based second chance checking accounts

Certain regional credit unions and banks have second chance account options. However, the customers are required to reside in certain states or meet specific membership requirements. Here's a list with a few banks and credit unions that offer second chance accounts.

Regional bank and credit union accounts

American Airlines Credit Union : Appalachian Community Federal Credit Union : Bank of the Ozarks : BOK Financial : Centennial Bank : City National Bank : Corporate America Family Credit Union : Fifth Third Bank : First Financial Bank : Hope Credit Union : OneUnited Bank : Republic Bank : Simmons Bank : Staley Credit Union : Unify Financial Credit Union : Webster Bank : Woodforest National Bank :

Do you want (or require) an account at an institution of state? You can find options by clicking here.

Alabama

Avadian Credit Union : Azalea City Credit Union : Community Bank & Trust : Family Security Credit Union : First National Bank : Gulf Winds Federal Credit Union : United Bank :

Alaska

True North Federal Credit Union :

Arizona

Alhambra Credit Union : Banner Federal Credit Union : Copper State Credit Union : MariSol Federal Credit Union : Tucson Old Pueblo Credit Union :

Arkansas

Diamond Bank : Red River Credit Union : River Valley Community Federal Credit Union :

California

Befit Financial Federal Credit Union : Excite Credit Union : Foothill Credit Union : Los Angeles Federal Credit Union : North County Credit Union : Premier America Credit Union : Priority One Credit Union : Self-Help Federal Credit Union : Strata Credit Union :

Colorado

Liberty Savings Bank : NuVista Federal Credit Union :

Connecticut

Eastern Savings Bank : Finex Credit Union : Hartford Federal Credit Union : Tobacco Valley Teachers Federal Credit Union :

Delaware

No accounts found at state-based financial institutions. Check for regional and national alternatives.

District of Columbia

There are no accounts in banks and financial institutions located in the United States. Find regional and national options.

Florida

Axiom Bank : Central Credit Union of Florida : Community First Credit Union : Compass Financial Federal Credit Union : First American Bank : First Florida Credit Union : Gold Coast Federal Credit Union : Gulf Winds Federal Credit Union : JetStream Federal Credit Union : Liberty Savings Bank : McCoy Federal Credit Union : Membership First Credit Union of Florida : Okaloosa County Teachers Federal Credit Union : Priority Credit Union : San Antonio Citizens Federal Credit Union : South Florida Federal Credit Union : United Bank :

Georgia

Community Bank & Trust : Excel Federal Credit Union : Georgia's Own Credit Union : Health Center Credit Union : Members United Credit Union : Peach State Federal Credit Union :

Hawaii

None of the accounts are found in state-owned financial institutions. Look for national and regional options.

Idaho

Latah Credit Union :

Illinois

Catholic & Community Credit Union : First American Bank : First National Bank and Trust Company : Marquette Bank : Prairieland Federal Credit Union :

Indiana

Centra Credit Union : Diamond Valley Federal Credit Union : Evansville Teachers Federal Credit Union : Heritage Federal Credit Union : Horizon Bank : Park Community Credit Union : Regional Federal Credit Union :

Iowa

Collins Community Credit Union : Federation Bank : Greater Iowa Credit Union : North Iowa Community Credit Union :

Kansas

Central National Bank : United Consumers Credit Union :

Kentucky

The Cecilian Bank : Central Bank : Evansville Teachers Federal Credit Union : First United Bank and Trust Company : FNB Bank : Heritage Federal Credit Union : Home Federal Bank : Park Community Credit Union :

Louisiana

Pelican State Credit Union : Southwest Louisiana Credit Union :

Maine

Five County Credit Union :

Maryland

Central Credit Union of Maryland : Clear Mountain Bank : Market USA Federal Credit Union : Security Plus Federal Credit Union :

Massachusetts

Alden Credit Union : Athol Credit Union :

Michigan

Credit Union One : Horizon Bank : Marshall Community Credit Union members First Credit Union : Michigan State University Federal Credit Union :

Minnesota

Minnesota Valley Federal Credit Union :

Mississippi

Citizens National Bank : Gulf Coast Community Credit Union : Magnolia Federal Credit Union : MUNA Federal Credit Union :

Missouri

Columbia Credit Union : Electro Savings Credit Union : First State Community Bank : Health Care Family Credit Union : Montgomery Bank : St. Louis Community Credit Union : Town & Country Bank : United Consumers Credit Union : United Credit Union : Wood & Huston Bank :

Montana

Clearwater Credit Union : Valley Credit Union :

Nebraska

Central National Bank :

Nevada

Clark County Credit Union : WestStar Credit Union :

New Hampshire

No accounts found at state-based financial institutions. Find national options.

New Jersey

Credit Union of New Jersey : Jersey Shore Federal Credit Union : United Teletech Financial Federal Credit Union :

New Mexico

Bank of Albuquerque : Lea County State Bank :

New York

Adirondack Regional Federal Credit Union : Alternatives Federal Credit Union : Centra Credit Union : Financial Trust Federal Credit Union : Fulton Savings Bank : Genesee Valley Federal Credit Union :

North Carolina

Charlotte Metro Credit Union : Excite Credit Union :

North Dakota

There are no accounts at state-owned financial institutions. Check for national options.

Ohio

Buckeye State Credit Union : Eaton Family Credit Union, Inc. : Hopewell Federal Credit Union : Kemba Federal Credit Union : Members Trust Federal Credit Union : Superior Credit Union :

Oklahoma

Allegiance Credit Union : Bank of Oklahoma : Citizens Bank of Edmond : Oklahoma Educators Credit Union : TTCU Federal Credit Union Weokie (Credit Union) : Western Sun Federal Credit Union :

Oregon

Point West Credit Union :

Pennsylvania

Utilities Employees Credit Union : West Branch Valley Federal Credit Union :

Rhode Island

No accounts found at state-based financial institutions. Find regional and national alternatives.

South Carolina

Caro Smart Financial Solutions : Carolina Trust Federal Credit Union : HopeSouth Credit Union : Market USA Federal Credit Union : Peach State Federal Credit Union Vital Federal Credit Union :

South Dakota

There are no accounts at state-owned financial institutions. Look for options that are national.

Tennessee

First National Bank : Greater Eastern Credit Union : Holston Methodist Federal Credit Union : Home Federal Bank : Select Seven Credit Union :

Texas

4U Credit Union : Abilene Teachers Federal Credit Union : AFFCU : Allied Federal Credit Union : Associated Credit Union of Texas : Bank of Texas : Baptist Credit Union : Chocolate Bayou Credit Union : Diamond Bank : First Service Credit Union : Houston Metropolitan Federal Credit Union : Kelly Community Federal Credit Union : MemberSource Credit Union : Members Trust Federal Credit Union : Memorial Credit Union : Neighborhood Credit Union : North East Texas Credit Union : Peoples Bank : Premier America Credit Union : Prestige Community Credit Union : Red River Credit Union : Rio Bank : Select Federal Credit Union : Southside Bank : Tarrant County's Credit Union : United Heritage Credit Union : Unity One Credit Union :

Utah

American United Federal Credit Union : Cyprus Credit Union :

Vermont

No accounts found at state-based financial institutions. Find national options.

Virginia

Central Virginia Federal Credit Union : Healthcare Systems Federal Credit Union : Member One Federal Credit Union :

Washington

MountainCrest Credit Union :

West Virginia

Clear Mountain Bank : West Virginia Federal Credit Union :

Wisconsin

Brewery Credit Union : Dane County Credit Union : First National Bank and Trust Company : Tomahawk Community Bank :

Wyoming

WyHy Federal Credit Union : WYO Central Federal Credit Union : Valley Credit Union :

Did we leave an institution that you have a financial relationship with on of this list? Please .

About the authors: Spencer Tierney is a writer and NerdWallet's authority for certificates of deposit. He has had his work featured in USA Today and the Los Angeles Times.

Chanelle Bessette works as a financial writer for NerdWallet writing about banking. She specializes in checking and cash management accounts.

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In the Debt Management field, Debt Consolidation vs. Debt Consolidation: What Is Better?

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In the Debt Management field, Debt Consolidation vs. Debt Consolidation: Which Is Better?

Consolidation and debt management are two paths to relief from debt. Which is best for you is based on your circumstances

Written by Sean Pyles Senior Writer | Personal financial, debt Sean Pyles leads podcasting at NerdWallet as the producer and host of NerdWallet's "Smart Money" podcast. The show "Smart Money" Sean talks with Nerds from NerdWallet's NerdWallet Content team to answer listeners' personal finance questions. With a particular focus on sensible and practical money tips, Sean provides real-world guidance to help people improve their financial lives. In addition to answering listeners' financial concerns on "Smart Money" Sean also interviews guests outside of NerdWallet and creates special segments to explore topics such as the racial gap in wealth and how to begin investing, and the history of student loans.

Before Sean was the host of podcasting for NerdWallet He also covered issues concerning consumer debt. His work has appeared throughout the media including USA Today, The New York Times and elsewhere. When when he's not writing about personal finance, Sean can be found digging around the garden, taking runs , and taking his dog for long walks. He is based in Ocean Shores, Washington.

Updated August 5, 2021 12:54PM PDT

Editor: Kathy Hinson Lead Assigning Editor Personal finances, credit scoring managing money and debt Kathy Hinson leads the Core Personal Finance team at NerdWallet. In the past, she worked for 18 years with The Oregonian in Portland in capacities such as chief of the copy desk and team leader for design and editing. Prior experience includes copy and news editing for various Southern California newspapers, including the Los Angeles Times. She earned a bachelor's degree in mass communication and journalism from the University of Iowa.

Many or all of the items featured on this page are provided by our partners who compensate us. This affects the products we write about and the location and manner in which the product appears on a page. But, it doesn't affect our assessments. Our views are our own. Here's a list and .

The debt management process and the consolidation can both combine several debts into one, with a lower interest rate. This can help you more quickly and save you money.

The best approach for you is based on the kind and amount of debt you have.

It's debt-crushing time

Register to join the link and track everything from cards to mortgages in one location.

Debt management

A rolls several credit card debts in one monthly payment and reduced interest rate.

The repayment plan typically lasts between three and five years and generally, you can't create new credit lines or utilize credit cards during that period. The plans mainly address debts from credit cards, not student loans medical bills, personal loans.

Why you would choose this:

The majority of your credit card credit card

You have more debt than you can reasonably consolidate

Your credit score won't be able to get you for the debt consolidation service you're seeking, like the balance transfer credit card, or

You'd like to have the external discipline the plan enforces to prevent you from adding to your balances

Seek out a start-up debt management plan. Many agencies provide plans online or over the phone.

Consolidation of debt

rolls several debts into a single new one, ideally with a lower rate of interest. There are a few ways to do it using the personal loan or balance-transfer credit card, 401(k) loan or home-equity loan.

You'll require excellent or great credit to qualify for lowest interest rates on a personal loan or balance transfer credit card.

Why you would pick it:

You can qualify for a lower interest rate than you're paying now and save you money and can help you pay off debt more quickly.

You want to cut the amount of money you're managing

You are able to keep access to credit while paying down the debt

The author's bio: Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His work has appeared on The New York Times, USA Today and elsewhere.

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Business auto loans: What they are & how to get one Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial choices by providing you with interactive tools and financial calculators as well as publishing authentic and objective content by enabling you to conduct your own research and compare data for no cost and help you make sound financial decisions. Bankrate has agreements with issuers such as, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The products that appear on this website are provided by companies who pay us. This compensation may impact how and where products are displayed on this site, including for instance, the sequence in which they appear in the listing categories and other categories, unless prohibited by law. This applies to our loan products, such as mortgages and home equity and other home lending products. But this compensation does have no impact on the information we provide, or the reviews that you see on this site. We do not cover the universe of companies or financial offers that may be accessible to you. Thomas Barwick/Getty Images

3 min read Published September 15, 2022

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Written by Bankrate The article was created using automation technology and thoroughly verified and edited by an editor on our editorial team. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping readers gain the confidence to manage their finances by providing clear, well-researched facts that break down complicated topics into digestible pieces. Review by Mark Kantrowtiz by Nationally recognized expert in student financial aid Mark Kantrowitz is an expert on student financial aid including the FAFSA, 529 plans, scholarships tax benefits for education as well as student loans. The Bankrate guarantee

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There are money-related questions. Bankrate has answers. Our experts have been helping you master your money for over four years. We continually strive to provide our readers with the professional guidance and the tools necessary to be successful throughout their financial journey. Bankrate adheres to strict standards standard of conduct, which means that you can be sure that our content is honest and precise. Our award-winning editors, reporters and editors produce honest and reliable content to help you make the right financial decisions. The content created by our editorial team is factual, accurate and uninfluenced by our advertisers. We're honest regarding how we're able to bring quality information, competitive rates and useful tools for you , by describing how we earn our money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the promotion of sponsored goods andservices or through you clicking specific links on our website. So, this compensation can impact how, where and in what order products are listed, except where prohibited by law. This is the case for our loan products, such as mortgages and home equity, and other home lending products. Other elements, like our own rules for our website and whether or not a product is offered in the area you reside in or is within your personal credit score may also influence how and where products appear on this website. While we strive to provide an array of offers, Bankrate does not include specific information on every credit or financial products or services. If you're planning to finance a vehicle for your business, a business auto loan may be a good option. The loan is usually secured through the car, which implies that the lender could take over the vehicle if the loan is not repaid. Business auto loans are a great way in order to fund the purchase of new or used vehicle -- as well as those that are modified for business purposes -- and the loan terms will vary depending of the lender. What is a business auto loan? A business loan is an loan that is used to finance purchasing a car for business purposes. Just like a personal auto loan the car purchased can be secured. Some lenders may require the vehicle be used exclusively for business purposes, and many require that the buyer must have a minimum credit score -whether personal, business, or both. The loan may also be personally secured by the borrower this means it is possible that personal belongings of the borrower could be at risk if they fail to repay the loan is not paid back. What are the steps to obtain a business auto loan If you want to get a business loan it is necessary to first plan. From there, it's similar to getting an individual auto loan however with some additional specifications. Set a budget: Whether you're buying a new or used vehicle it is necessary to decide on the most you can afford to spend on the basis of a monthly basis. You should also determine the amount you're willing to invest overall. Recheck your credit score: Examine your business and personal credit scores and reports to identify and rectify any errors. It can take up to 30 days for the lender to respond, so be sure to do it in advance of the time you plan to purchase. If you have a credit score that is good enough and your credit report relatively clean, you may be eligible for a lower rate. Select a vehicle: Look through your options to decide on what kind of vehicle you're planning to finance. Some lenders may only lend on new cars like this, but others may have tight restrictions on the types of used vehicles they finance. Find pre-approved lenders: Compare with at least three to determine which is willing to offer you an auto for business loan along with what its terms. Certain lenders might require that you provide documentation proving you own the business. Documentation: You'll be required to supply an employer ID number, or Social Security number, your business bank statements, tax returns as well as a profit and loss statement along with cash flow statements and the balance sheet. You might also have to show proof of your creditworthiness and income. Where to get an auto business loan If you are looking for auto loans for your small-scale company, you have three main choices: banks, internet lenders and alternative lenders. Banks that are traditional Traditional banks generally provide loans that have affordable rates and flexible repayment terms -However, they might limit mileage and vehicle age. Business auto loan rates could fall lower than 3 percent when getting funds through the bank. Keep in mind that the process can be lengthy and requires many documents. Online lenders aren't as rigorous as banks However, they do require a good FICO rating for the business owner, and may have some limitations on the vehicles that can be purchased. It may be easier to qualify, and the rates of interest are typically comparable to a bank or credit union. Alternative lenders When you choose to use alternatives lenders, you'll typically find interest rates that start a little higher. But there are usually looser restrictions on age and mileage, and the process is significantly faster. Alternatives to business auto loans Going with a business auto loan isn't the only option but it is a viable option. There are three options that could help you secure the vehicle you need for your business. Small business loan: If you need an alternative source of cash flow, working capital small business loan could be a better option. However, these loans typically have higher fees and interest rates that a conventional car loan. Personal loan is not a great idea to make use of a personal loan to finance a company vehicle. These kinds of loans are typically more expensive than business-specific loan alternatives. Consumer auto loan: If the vehicle is used for personal use and not for business, then a consumer auto loan may be a better option. These can be easier to secure, but you put your personal credit on the line instead of your company's. Leasing: You may be in a position to lease a vehicle for your company rather than purchasing it. It won't be an asset that your business could claim, however it is possible to incorporate costs into . It might also be less expensive on a month-to-month basis. The reason you shouldn't make use of credit cards using a credit card, whether for business or not isn't the best option for the most part. The high transaction costs make many retailers reluctant to let credit cards. Credit cards are also very expensive when compared to loans. loan. Rates are higher, both due to the nature of the product and since the vehicle isn't acting as security. The bottom line Whether you're seeking to finance a car solely for business use or be for personal use be sure to look over the various options available to you. With the business vehicle loan interest rates that start at 3 percent for those with good credit scores it's essential to make sure you get the best deal. Learn more

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The article was written by generated using automation technology and was thoroughly checked for accuracy and quality by an editor from our editorial team. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers gain the confidence to manage their finances with precise, well-studied information that breaks down otherwise complex subjects into bite-sized pieces.

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Reviewed by Mark K. Kantrowitz Reviewed by Nationally acknowledged experts on student aid Mark Kantrowitz is an expert on student financial aid, the FAFSA as well as scholarships, 529 plans as well as tax benefits for education as well as student loans.

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