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Your credit score plays a key role in nearly every aspect of your financial life—from the rates you receive on loans to applying for utility services and cellphone plans. Given how often those numbers will come into play, it is a smart move to aim for the best scores you can. 

Your credit scores are designed to predict how likely you are to repay a loan as agreed. These scores are calculated using information found in your credit reports—including payment history, length of credit history, outstanding debt, and more. Having higher credit scores can make it easier to qualify for a loan, credit card, or mortgage. In this article, we’ll take a look at what factors affect your credit scores the most.[1]  <h2>What Factors Make Up Your Credit Scores? </h2>Credit-scoring companies use software to analyze the information found in your credit reports. <a href="https://www.myfico.com/credit-education/whats-in-your-credit-score">FICO</a><a href="https://www.myfico.com/credit-education/whats-in-your-credit-score">®</a><a href="https://www.myfico.com/credit-education/whats-in-your-credit-score"> Score</a> and <a href="https://www.vantagescore.com/press_releases/the-complete-guide-to-your-vantagescore/">VantageScore</a> are the two main credit-scoring companies, with the Fair Isaac Corporation (FICO) Score being used by about 90% of top lenders.[1] [2] [3] [5]  Many other credit scores exist, so it’s important to note that a lender may base its decision on another score entirely.[1]  Scoring software programs use algorithms to review your credit history and financial habits. Scoring model calculations are a trade secret, but the factors that affect your FICO score and how they’re weighted are public knowledge.[1]  Below is a list of the factors that influence your FICO score and how each factor is weighted. The percentages reflect the importance of each factor. [2] <ul><li>Payment history: 35% </li><li>Credit utilization: 30% </li><li>Length of credit history: 15% </li><li>Credit mix: 10% </li><li>New credit: 10% </li></ul>VantageScore and other credit models may use slightly different criteria, but knowing how the FICO score works can help if you’re trying to improve your credit in general.[4] <h2>These 5 Factors Affect Your Credit Scores the Most </h2>Understanding how your credit scores are determined can help you improve your credit over time. Here’s a closer look at what’s considered during the scoring process. <h3>Payment History: 35% </h3>Payment history is the most important factor affecting your credit scores because it helps predict whether you’ll fall behind on future bills. Even just one payment that’s 30 days late can cause your scores to dip. Foreclosure, bankruptcy, or an account sent to collections can have more serious consequences to your credit scores. [2] Consistently making on-time payments can help keep your credit scores high. Missed payments can happen, but it’s important to get caught up on your bills as soon as possible. Over time, if you’re able to demonstrate a more positive payment history, your credit score will likely improve.  <h3>Credit Utilization: 30% </h3>Credit utilization is the amount you owe compared to your available credit. It’s calculated as a percentage and is the second most important factor in determining your credit scores. For example, if you have a $200 balance on a credit card with a $1,000 limit, then your utilization on that card is 20%. Credit-scoring models usually calculate utilization for each of your accounts separately as well as your total credit utilization across all accounts.[2] People with credit utilization under 10% tend to have the highest credit scores, while utilization rates over 30% can negatively affect your credit scores. Try paying down credit cards with high balances to help improve your credit utilization and give your scores a boost. Then, stay on top of your balances to keep utilization as low as possible.  <h3>Length of Credit History: 15% </h3>Credit-scoring models also check how long each of your accounts has been open to evaluate your experience with managing debt. The age of your accounts carries less weight than other factors. In general, the longer your credit history, the higher your score is likely to be. The FICO score checks the age of your newest and oldest accounts, plus the average of all your accounts.[2] The length of time you’ve had open credit cards and loans collectively make up your credit history. Keeping your credit cards open can help improve your credit history over time. (Keeping a loan account open for the long haul may technically help your credit. Open loans will elevate your DTI ratio and increase your interest costs, so it’s best to pay off any loans as soon as possible.) You may close a credit card or loan because you paid off the debt or closed the account by choice. FICO can still use your closed accounts to calculate the age of your credit history. When you close an account in good standing, with no late payments, it often remains on your credit report for up to 10 years.[6] <h3>Credit Mix: 10% </h3>Your credit mix, or the different types of accounts on your credit report, also helps determine your credit scores. While your credit mix isn’t nearly as important as your payment history or age of accounts, it can help show lenders that you can handle multiple types of debt. For instance, you may have taken out auto loans, student loans, mortgages, revolving credit such as credit cards, and installment loans like <a href="https://www.lendingclub.com/resource-center/personal-loan/top-reasons-to-get-a-personal-loan">personal loans</a>. People with high credit scores often have a mix of several different types of accounts.[2]  You may decide to open a new account to boost your credit scores. For instance, if you only have a student loan in your credit history, you may consider opening a retail credit card with a lower limit. Before opening any accounts, be sure you can afford to take on extra debt and make any payments on time. Keep in mind that your credit mix is a relatively minor factor—so adding the new account might have a small impact on your scores.   <h3>New Credit: 10% </h3>A new credit account can help improve your credit mix and increase your total available credit. It’s important to be aware that each credit-scoring system may look at new credit differently. Applying for new accounts may ding your credit—especially if you apply for several cards in a short period.[2] Credit-scoring models know that people often shop around for the best rates before taking out installment loans, such as mortgages. If you submit applications for installment loans in a short time frame, typically two weeks, the credit-scoring system usually counts all of the applications as one hard inquiry. This has less of an impact on your credit scores.  <h2>What Doesn’t Affect Your Credit Score? </h2>Payment history, credit utilization, age of accounts, type of accounts, and how often you apply for new credit all play a role in how your credit scores are calculated. Other factors won’t have an impact at all.[7] Here’s a look at some pieces of information that aren’t factored into your FICO score: <h3>Checking Your Own Credit Scores </h3>Checking your own credit score regularly is a good way to keep tabs on your credit scores and look out for any unexpected or fraudulent information. You may also choose to check your score before applying for a credit card or loan. Checking your own credit score is considered a soft inquiry. Unlike hard inquiries, these won’t impact your credit.[7] <h3>Checking Your Loan Rates </h3>With some creditors, like LendingClub Bank, checking your loan rate generates a soft credit inquiry, which won’t impact your scores. Just keep in mind a hard inquiry is likely when your loan is funded which could affect your credit score.[7] <h3>Debt-to-Income Ratio </h3><a href="https://www.lendingclub.com/resource-center/personal-loan/what-is-debt-to-income-ratio-how-to-improve-it">Debt-to-income</a> (DTI) ratio, a comparison of your monthly income and bills, is often an important factor in lending decisions. A lower DTI ratio may help you get approved with more favorable loan offers because it means less of your income goes toward debt payments. Your DTI ratio doesn’t impact your credit score. However, having a lot of debt or maxing out your credit cards can negatively impact your credit scores.[7] <h3>Your Personal Information </h3>A credit report has a section that contains personal information such as your name, Social Security number, date of birth, current address, and previous addresses. This information helps verify your identity and doesn’t affect your credit scores. Your credit reports won’t include demographic information like gender, ethnicity, race, religion, immigration status, political affiliations, or marital status. This information also won’t affect your credit scores.[7] <h3>Your Employer, Income, and Net Worth </h3>Your credit reports won’t include information about your income or net worth but may contain information about your current and previous employers. Lenders may consider your employment status and financial health when you apply for credit, but this information won’t affect your credit scores.[7] <h3>Medical Debt </h3>As of 2023, credit reporting companies removed medical debt that’s less than a year old and all paid medical debt from credit reports. Steps are also being taken to remove medical debt under $500. If you find medical debt on your credit reports, you may be able to take action to have it removed.[8] <h2>Do Personal Loans Affect Your Credit Scores? </h2>A personal loan is a type of installment loan that can be used for almost any purpose, including <a href="https://www.lendingclub.com/personal-loan/credit-card-consolidation-loan">debt consolidation</a> or paying for a large expense like a wedding, vacation, or home repairs. Personal loans are generally <a href="https://www.lendingclub.com/resource-center/personal-loan/what-is-an-unsecured-personal-loan">unsecured</a>, require no collateral to qualify, and are available at banks, credit unions, and online lenders.   Personal loans may impact your credit scores in a few different ways. Here are a few things to consider:<ul><li>Credit inquiries: Checking your rate may only generate a soft credit inquiry on a person’s credit report, which is visible only to that person. A hard credit inquiry, which is visible to that person and others, and which may affect that person’s credit score, only appears on the person’s credit report if and when a loan is issued to the person. Credit eligibility is not guaranteed. <a href="https://www.lendingclub.com/resource-center/personal-finance/key-differences-of-a-soft-credit-check-vs-hard-credit-check">Learn more about soft vs. hard credit inquiries</a>. </li><li>Reported to credit bureaus: Making on-time loan payments can help boost your payment history and improve your credit scores, while late or missed payments have a negative effect.[9] </li><li>Adds to credit mix: Personal loans make a great addition to your credit mix, which can help raise your scores—even after the loan is closed (as long as you have a positive payment history).[2]  </li></ul><h2>5 Quick Tips to Improve Your Credit Scores </h2>Once you understand what affects your credit, it can be easier to take action to <a href="https://www.lendingclub.com/resource-center/personal-loan/how-to-improve-credit-score">improve your credit score</a> and build long-lasting credit habits.   <ol><li>Pay your bills on time. Show you can manage credit by making your minimum monthly payment on time each month.[10]   </li><li>Pay down revolving accounts. Tackle balances on revolving credit accounts, like credit cards, personal lines of credit, and home equity lines of credit (HELOCs), to help lower your credit utilization.[10]  </li><li>Bring past-due accounts current. Pay off past-due balances or work with your lender to bring your account current.[10] </li><li>Limit how often you apply for new credit. Be selective when applying for new loans, credit cards, and other types of credit to avoid opening too much credit during a short amount of time.[10]  </li><li>Don’t close unused credit card accounts. Keep credit cards open, even if you don’t use them often, to keep credit utilization low.[10] </li></ol><h2>The Bottom Line </h2>Many factors affect your credit scores—and some more than others. But with careful attention to your finances, you can often improve your score over time. Keep in mind that payment history and credit utilization make up nearly two-thirds of your scores, so it’s important to pay your bills on time and keep balances low.[1][2]  <a href="https://www.lendingclub.com/resource-center/personal-finance/how-to-read-your-credit-report-identify-red-flags">Check your credit reports</a> regularly to keep tabs on your scores and look for inaccuracies. You can request free copies of your credit reports from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once a week at <a href="http://annualcreditreport.com/">AnnualCreditReport.com</a>.[10]     <hr/><ol><li><a href="https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-credit-report-and-a-credit-score-en-2069/">Consumer Financial Protection Bureau</a>. “What is the difference between a credit report and a credit score?” </li><li><a href="https://www.myfico.com/credit-education/whats-in-your-credit-score">myFICO</a>. “What&#39;s in my FICO Scores?”  </li><li><a href="https://www.fico.com/en/newsroom/fico-score-remains-most-widely-used-credit-score-securitization-market-keeping-lender">myFICO</a>. “FICO Score Remains the Most Widely Used Credit Score in the Securitization Market, Keeping Lender Confidence.”  </li><li><a href="https://www.vantagescore.com/press_releases/the-complete-guide-to-your-vantagescore/">VantageScore</a>. “The Complete Guide to Your VantageScore.” </li><li>MyFICO </li><li><a href="https://www.experian.com/blogs/ask-experian/when-are-closed-accounts-deleted/">Experian</a>. “When Are Closed Accounts Deleted?” </li><li><a href="https://www.myfico.com/credit-education/credit-scores/whats-not-in-your-credit-score">myFICO</a>. “What&#39;s not in my FICO Scores.” </li><li><a href="https://www.consumerfinance.gov/about-us/blog/medical-debt-anything-already-paid-or-under-500-should-no-longer-be-on-your-credit-report/">Consumer Financial Protection Bureau</a>. “Have medical debt? Anything already paid or under $500 should no longer be on your credit report.&quot; </li><li><a href="https://www.consumerfinance.gov/ask-cfpb/what-is-a-personal-installment-loan-en-2114/">Consumer Financial Protection Bureau</a>. “What is a personal installment loan?” </li><li><a href="https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-and-keep-a-good-credit-score-en-318/">Consumer Financial Protection Bureau</a>. “How do I get and keep a good credit score?”</li></ol>

To open a business bank account, you’ll need to choose a bank, gather documentation to apply, and have funds on hand for an initial deposit.  

Small business owners, including sole proprietors, typically need to open a business bank account to keep business and personal financial activities separate. Opening a business bank account also comes with other benefits, like streamlined accounting, a boost to your company’s credibility, protection of your personal assets, and helpful banking services like business loans, credit cards, and lines of credit.  Keep reading to learn how to open a business bank account and what type of information you need to apply.  <h2>How Do You Open a Business Bank Account? </h2>Opening a business bank account is a straightforward process. But before you can open an account for your company, it’s important to follow these steps. <h3>1. Determine What Kind of Account You Need </h3>Businesses can usually choose from several different kinds of accounts, including checking, savings, or merchant services. While checking and savings accounts are common and can be used by most businesses, a merchant services account is a special type of bank account designed to accept credit card payments from customers. These are usually linked to a checking account.  Depending on your business structure, you may be legally required to have a certain type of account. If you’re not sure what type of business account you need, consider talking to a business advisor like a certified public accountant (CPA), lawyer, or bank representative.  <h3>2. Shop Around  </h3>You can find business bank accounts at banks, credit unions, and online lenders. When selecting an institution, it’s important to consider if you need access to a physical branch or prefer to bank online. Rates, fees, minimum balance requirements, and other account features can vary widely between banks, so be sure to compare:   <ul><li>Special introductory offers </li><li>Interest rates for savings accounts, checking accounts, and lines of credit </li><li>Monthly account fees </li><li>Transaction fees for incidentals like wire transfers, nonsufficient funds, and overdrafts </li><li>Minimum account balance fees </li><li>ATM access </li><li>Branch access </li><li>Bill pay features </li><li>Accounting software integration capabilities </li><li>Additional products like credit cards and small business loans </li></ul><h3>3. Prepare Your Documents </h3>Before you apply online or head to your local bank branch to open a business bank account, you’ll need to gather some important documents. Requirements can vary from bank to bank, so it&#39;s a good idea to confirm them with the bank in advance. You can often find a list of required documents on a bank’s website, or you can call the bank to ask.  <h3>4. Fund Your Account </h3>Some banks may let you open a business account for free, but you’ll typically need to make an initial deposit. If a deposit is required, be sure to have cash or check handy. If you open a business account at the same bank where you do your personal banking, you may be able to transfer funds from one account to another.  <h2>What Do You Need to Open a Business Bank Account? </h2>Preparing your information and documents ahead of time can help ensure a seamless experience when opening a business bank account. While requirements differ between banks, here’s a closer look at what’s commonly needed to open a business bank account.  <h3>Employer Identification Number (EIN) </h3>The Internal Revenue Service (IRS) uses your employer identification number, or EIN, to identify your business entity. (You may see these listed as a “federal tax identification number,” and they’re the same.) If you don’t have one already, you can apply for a free EIN <a href="https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online">online through the IRS</a>. Sole proprietors may be able to use their Social Security numbers to open a business account instead.  <h3>Business Formation Documents </h3>Most business types, including partnerships, S-Corporations (S-Corps), and limited liability companies (LLCs), have formation documents that define the structure of the business. Sometimes called articles of incorporation, your formation documents establish your company’s legal structure. Sole proprietors don’t need articles of incorporation.  <h3>Ownership Agreements </h3>Certain types of business structures, like S-Corps and LLCs, are required to designate ownership in the company. Ownership is usually demonstrated by partnership or membership interest in a company or by issuing shares of stock. Ownership agreements outline how ownership is distributed among company owners.  <h3>Personal Identification </h3>You’ll likely need to present at least one government-issued photo ID, like a driver’s license or passport, to open a bank account. Some banks require two forms of identification, so be sure to check what’s required with your bank.  <h3>Business License </h3>Many types of businesses are required to obtain a license to operate. Regulations can vary by industry and local laws, but if your business does require a license, you’ll likely need to have this handy when you open a business account.  <h3>DBA Certificate </h3>Some businesses are required to register the company’s trade name (also called a fictitious or assumed name) with a “doing business as” or DBA certificate. Requirements vary depending on where your business is located and your company’s legal structure. But if you do have a DBA certificate, be sure to bring it along when you open your business account.  <h2>5 Benefits of Opening a Business Bank Account </h2>Whether you’re running a small business, freelancing, or taking on a side gig hustle, a business bank account can help your small business in many different ways. Here’s a closer look at some of the key benefits to opening a business bank account.   <ol><li>Streamlined financials: A business bank account allows you to easily keep business bookkeeping separate from your personal finances. You can use your account to track sales and expenses, pay bills, or send wire transfers. Plus, you can often link your account to your preferred accounting software and authorize employee access to the account.   </li><li>Liability protection: Certain types of business structures, like S corps or LLCs, may be required to have a business account to ensure personal and company finances remain separate.  </li><li>Payment processing: Linking a business account to your company’s payment processing platform can help you keep business payments separate from personal transactions. This is especially important when tracking sales for tax purposes.  </li><li>Professional image: A business bank account can give your business a boost in credibility and help you build trust with customers and vendors—especially if you order checks with your business logo or add your branding to your payment experience.  </li><li>Access to other financial tools: Once you have a business account, you may be able to get a business debit card, credit card, loan, or line of credit through the same bank.  </li></ol><h2>The Bottom Line </h2>If you’re a business owner, it’s a good idea to do your banking through a business bank account, instead of your personal checking or savings account. With many banks to choose from, it pays to do your research to find a bank that will meet your business’s financial needs today—and as your business grows. For instance, you can start with a <a href="/business-deposits/tailored-checking">business checking account</a> and add a savings account or business credit card down the line. Your accountant can help point you in the right direction if you’re unsure where to start or what type of business account you may need.

Identity theft happens when your personal information is stolen and used without your permission. Understanding the warning signs, knowing how to protect your information, and what to do if your identity is stolen can help keep your identity safe and recover faster. 

<h2>What Is Identity Theft? </h2>Identity theft is the fraudulent collection and use of your private personal or financial information, like your Social Security number, name and address, credit card numbers, bank account numbers, and medical insurance numbers. At the very least, identity theft can cause unwanted stress. In worst-case scenarios, identity thieves can attempt to apply for new credit accounts in your name, make fraudulent purchases, submit health care claims, or file fraudulent tax returns in an attempt to collect your tax refund. In some cases, identity thieves sell the stolen information to other identity thieves on the dark web.[2] Identity theft can result in financial loss, credit damage, medical debt, and IRS penalties and investigation. If you’re a victim of identity theft, you may need to set up new accounts and get new copies of your debit and cards. Depending on the severity and nature of the identity theft, you may need to file an identity theft report with the Federal Trade Commission (FTC) and get the police involved. Recovering from identity theft often takes months—and sometimes years.3 <h2>Common Types of Identity Theft and Warning Signs </h2>Understanding the most common types of identity theft can help you protect your personal information and finances. Here’s a closer look at what to watch out for and what to do if you suspect you’ve been an identity theft victim. <h3>Digital identity theft </h3>Digital identity theft happens when your personal information is accessed through the internet. It can take many forms including Wi-Fi hacking, malware activity, phishing attacks, and data breaches.  Here’s a closer look at warning signs of digital identity theft and what to do next. <h3>Wi-Fi hacking </h3>Using public Wi-Fi to browse the web can put you at risk for identity theft. Major sites are generally safe. On lesser-known sites, thieves can easily intercept private information on unsecured networks. Never enter private information like credit card details or your Social Security number on unknown sites.  If you see suspicious charges on your financial statements or new accounts on your credit reports, you may need to report the fraud to your bank and the three major credit bureaus. Your bank can freeze your accounts and reimburse any fraudulent charges. You can also freeze your credit to prevent new accounts from being opened in your name. If someone has already opened new accounts under your name, reach out to the provider to close them, and report the information to the credit bureaus. In severe cases, you may need to call the police. [2] [4] <h3>Phishing emails and text messages </h3>Watch out for messages that look like they’re coming from reputable sources. These messages are often an attempt to get you to open a malware-infected attachment or click through to fake websites where you enter your personal information.  If you receive a suspicious-looking message, do not open it. When possible, report as “phishing” or “spam” and then delete the message. Try not to click on any links or attachments if you open a phishing message by accident. For additional protection, consider adding malware-protection software to your devices. [2] [4] <h3>Data breaches </h3>Data breaches occur when identity thieves gain access to sensitive data, like usernames, passwords, addresses, and credit card information. You may hear about a data breach on the news, or if you have a compromised account, you may be notified to take special action like resetting your password.  You can minimize risk after a breach by using different login information for all of your accounts and signing up for identity theft protection services. These services will track your accounts, monitor the dark web for your personal information, and help you recover after the breach. [2] [4] <h3>Mail theft </h3>Fraudsters may also steal from your mailbox, trash, or recycling to get their hands on documents like your bank and credit card statements. If they find personal and financial information in the paperwork, they may be able to use it to make purchases, open new accounts, or run other scams. Thieves may also intercept credit card offers or other credit promotions to open new accounts in your name.  Shred mail and financial statements before tossing them in the trash to prevent private data from getting into the wrong hands. Or sign up for digital statements to reduce the amount of mail you get. To further deter thieves, consider setting up cameras and locking your garbage and recycling cans.  If you suspect someone has stolen or tampered with your mail, keep an eye out for fraudulent activity. Check your financial statements for fraudulent charges, look through your credit reports for new accounts opened in your name, and review your health insurance claims for fraud. Alert your bank and all three credit agencies, so they can take appropriate action to close your accounts and freeze your credit file. Consider calling the police to file a report. [2] [4] <h3>Credit card theft </h3>Thieves may be able to steal your credit card information using different methods. For instance, this may happen online when you enter your credit card information without using a secure internet connection or when you enter your card details into an unreliable website. Hackers may intercept information like your credit card number, security code, and expiration date.  Thieves can use various methods to steal your credit card information. They might watch you type your card details in public settings such as libraries or cafes. They could also call you and attempt to phish for your credit card details or steal your smartphone to access the cards stored in your digital wallet. Additionally, new technology allows thieves to scan your card information while it’s inside your wallet or when you use it to make a purchase in public.  If you suspect you’ve been a victim of credit card theft, contact your card issuer immediately. The issuer can cancel any fraudulent charges made on your card. Consider reporting the theft to the police, especially if your wallet or phone was stolen. You can also contact the credit bureaus to freeze your credit.[2] [4] <h2>7 Steps to Prevent Identity Theft </h2>You can never be too careful when it comes to protecting yourself from identity theft. Below are seven steps you can take to help protect yourself from identity theft and keep your information safe. <h3>1. Protect your devices with a password </h3>Add a password to your smartphone, laptop computer, tablet, and any other devices you use to connect to the internet. In the unlucky chance your device is lost or stolen, a password helps prevent access to personal information, mobile wallets, apps, and other private data stored on your device.   For added security, consider using biometric tools like facial recognition or touch identification, commonly found on mobile phones, tablets, and some laptops. Be sure all device-tracking settings are turned on so you can locate your device if it goes missing. Some devices also allow you to remotely lock access or wipe all data. [2] [4] <h3>2. Use strong passwords </h3>Secure your online accounts and apps with strong passwords that include a mix of numbers, letters, and characters. Stay away from easy-to-guess passwords like pet names or important dates. For added security, consider using computer-generated passwords. A password manager, like iPhone’s Keychain, can help keep passwords safe.  If you’re unable to use a strong password, experts recommend using a lengthy phrase with numbers and characters to better secure your private information. Try not to use the same password on multiple sites or apps. That way, if your password is compromised, criminals won’t be able to hack multiple accounts. [2] [4] <h3>3. Use two-step authentication </h3>Two-step authentication provides an additional layer of protection beyond a standard username and password. When you have two-step authentication turned on, you’ll sign into your account using your credentials and then provide additional information to verify your identity. For instance, you may need to type in a personal identification number (PIN) or a code sent to your phone or email.  More advanced apps, like banking tools, may even allow you to add facial recognition or fingerprinting for additional protection. Ideally, two-step authentication should be used whenever available. At the very minimum, you should add two-step authentication to protect financial information in your online credit card and bank accounts, P2P payment apps, and social media accounts. [2] [4] <h3>4. Protect personal information </h3>Identity thieves are typically after personal details like your name, address, phone number, date of birth, and Social Security number. Keep your guard up when entering personal information into websites and apps—especially if you’re using a public internet connection. Don’t let anyone see what you’re typing, and consider adding a privacy screen protector to shield your device from prying eyes. Install a VPN, or virtual private network, for further protection.  When sharing personal information by phone, be aware of who may be listening to your conversation. It’s also important to protect your personal documents. Don’t carry private paperwork like your Social Security card or birth certificate. And be sure to shred ATM receipts, credit card statements, actual credit cards, and bank statements before throwing them away. Criminals have been known to rummage through garbage and recycling bins looking for sensitive information. [2] [4] <h3>5. Be careful when disclosing financial information </h3>Never give your credit card number over the phone, unless you made the call and you’re certain you&#39;re dealing with a legitimate company. And if a random caller contacts you, don’t provide any private or personal information—like your full name, birth date, or Social Security number. Learn how to spot the <a href="https://www.lendingclub.com/resource-center/personal-loan/how-to-protect-yourself-from-scams">tricks scammers use</a>.   For example, representatives from a legitimate lender or financial institution will never ask you to wire them money over the phone. Thieves may also try to access your financial information online or over text. You may receive a phishing email asking you for credit card information to cover the cost of an order or shipping. Never provide financial details online unless you’re sure the company is trustworthy. [2] [4] <h3>6. Be mindful on social media </h3>Think carefully about what you post on Facebook, Instagram, TikTok, LinkedIn, and other social media apps. Identify thieves may use information shared on social media to hack usernames and passwords. For example, avoid sharing your pet’s first name on social media, especially if you’ve used the name to answer a security question.  Additionally, watch out for connection requests or messages from people you don’t know. These could be attempts to steal your information. Sharing personal details or financial information over social media (or dating apps) is also not advised.  <h3>7. Regularly review credit reports and financial statements </h3>Review your bank account and credit card statements monthly. Notify your financial institution, bank, or credit card company if you find any unauthorized transactions. Make sure you review your <a href="https://www.lendingclub.com/resource-center/personal-finance/how-to-read-your-credit-report-identify-red-flags">credit reports</a> at least every few months. You can access free copies of your credit reports once a week from the three major credit bureaus—Equifax, Experian, and TransUnion—at <a href="http://annualcreditreport.com/">AnnualCreditReport.com</a>. [2][4] Alert the credit bureau in writing if you find errors or signs of identity theft, such as new accounts you didn’t open. Follow up with the credit bureaus until they remove any inaccurate information. If you lose your wallet, credit card, or debit card, don’t wait for a fraudulent charge before contacting your bank or financial institution. Immediately freeze the accounts to prevent fraudsters from making purchases, and sign up for a credit-monitoring service that will alert you about suspicious transactions. [2][4] <h2>How to Report Identity Theft </h2>Falling victim to identity theft can be a stressful time—both mentally and financially. You aren’t alone, and there are processes in place to help you recover. <h3>1. Add a fraud alert to your credit report </h3>A fraud alert prevents an identity thief from opening up more accounts. As soon as you make the report to one credit bureau, that bureau is required to notify all the others on your behalf. You can contact any of three major credit bureaus to place a fraud alert on your credit report:  <ul><li>Equifax: (800) 685-1111 </li><li>Experian: (888) 397-3742 </li><li>TransUnion: (800) 909-8872 </li></ul>Keep in mind, that a fraud alert essentially freezes your credit report. You won’t be able to open new accounts unless you contact the bureau and ask it to temporarily lift the security freeze. This is helpful in preventing fraudsters from opening new accounts, but it adds a step if you need to apply for credit.[5] <h3>2. Report and close all fraudulent accounts and activity </h3>Contact the fraud department of each company where a fraudulent account was opened in your name. Ask for written confirmation that the accounts have been closed. Report unauthorized charges on existing accounts; your lender may cancel any unauthorized charges and change your account number. [2] [4] <h3>3. File a police report </h3>The police report creates an official record that you were the victim of a crime. This will support your claims with the credit-reporting agencies and creditors as you work to remove fraudulent debts or accounts from your credit record. [2][4] <h3>4. File a complaint with the Federal Trade Commission </h3>Filing a report with the FTC helps the government track and respond to identity theft. You can file a report online or by calling (877) 439-4388. [2][4] <h2>The Bottom Line </h2>Identity theft is a very serious matter that can cost you time and money. Depending on the severity you may need to get the police involved, and it can take months or even years to recover. New scams and technology to steal your data occur frequently.  Take steps to protect your personal and financial information, and consider using one of the many identity theft protection services available for added security. If you suspect you’ve been a victim of identity theft, take action immediately, or visit <a href="http://identitytheft.gov/">identitytheft.gov</a> to learn how to report identity theft and get help with a recovery plan. [2][4] <hr/><ol><li><a href="https://www.iii.org/fact-statistic/facts-statistics-identity-theft-and-cybercrime">Insurance Information Institute</a>. “Facts + Statistics: Identity theft and cybercrime.” </li><li><a href="https://www.usa.gov/identity-theft">U.S. Government</a>. “Identity theft.”  </li><li><a href="https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft">Internal Revenue Service</a>. “Taxpayer guide to identity theft.” </li><li><a href="https://consumer.ftc.gov/articles/what-know-about-identity-theft">Federal Trade Commission</a>. “What To Know About Identity Theft.” </li><li><a href="https://www.consumerfinance.gov/ask-cfpb/what-do-i-do-if-i-think-i-have-been-a-victim-of-identity-theft-en-31/">Consumer Finance Protection Bureau</a>. “What to do if I’ve been a victim of identity theft?” </li></ol>

Sticking to a budget can be challenging, but having a clear goal and rewards can help you stay on track.

Sticking to a budget can be challenging. The good news is that making mistakes is part of the learning process. When you start to get the hang of it, you’ll have a better understanding of your relationship with money and more control over your personal finances. We can’t give you a magic spell to keep your budget on track, but we’ve rounded up a few tips that can help you overcome challenges and stay inspired to stick to your budget.[1] <h2>Why It’s Important to Stick to Your Budget </h2>A <a href="https://www.lendingclub.com/resource-center/personal-finance/simple-steps-to-building-a-better-budget">budget is an important tool</a> to help you keep your finances on the right path. But using a budget can also help you in other ways. Here’s a closer look at why sticking to a budget matters.[1]<ul><li>Cover your expenses: A budget helps ensure you have enough money to cover your bills and other financial responsibilities like housing, utilities, and transportation.[1][2]  </li><li>Track your spending: Your budget provides visibility into your spending, so you can see where your money is going and pinpoint areas where you may be overspending.[1][2]  </li><li>Reach financial goals: Whether you want to save for long-term goals, like retirement, or short-term goals, like a home repair project, a budget gives you the opportunity to turn your goals into reality.[1][2]  </li><li>Manage your debt: A budget provides a clear picture of your debt, helping you determine the best path to <a href="https://www.lendingclub.com/resource-center/personal-finance/debt-snowball-vs-avalanche-which-should-you-choose">tackle debt head-</a><a href="https://www.lendingclub.com/resource-center/personal-finance/debt-snowball-vs-avalanche-which-should-you-choose">on</a>. [1] [3] </li><li>Improve your relationship with money: A well-thought-out budget can teach you to be more intentional with your money choices, increase discipline, and help you understand what you truly value.[1][2]  </li><li>Reduce financial stress: Paying bills and planning for the future can be stressful, but effective budgeting can help decrease money woes and create positive feelings about your financial future.[1][2]   </li></ul><h2>5 Ways to Stick to Your Budget </h2><h3>1. Get Excited About Your Goal </h3>Although <a href="https://www.lendingclub.com/resource-center/personal-finance/how-to-stop-living-paycheck-to-paycheck">paying your bills on time</a> and <a href="https://www.lendingclub.com/resource-center/personal-finance/your-emergency-fund-the-essential-guide">saving for an emergency fund</a> are certainly solid budgeting goals, sometimes it helps to have a goal that you can get really excited about. Maybe it&#39;s saving for a kitchen remodel, planning a wedding, or putting money away toward a down payment on a house. As you think about creating your budget, choose a goal that will keep you motivated, even when it gets tough to stay on track.[4]  <h3>2. Set a Date </h3>Choosing a deadline to reach your goal is often a good way to stay on top of your budget. When you have a tangible finish line, like a dream vacation, you’ll have something to look forward to at the end of a certain amount of time. You can also set milestones along the way to celebrate your progress for extra motivation.  <h3>3. Create a Visual Reminder </h3>That You Interact With Daily From a simple spreadsheet to budgeting apps or even your bank’s online services, you’ve got many tools available to help you manage your budget. Just be sure to choose a tool that requires you to engage with your budget daily. Maybe you receive a reminder from an app every morning or put $20 a day in a jar. Research different budget tools and ideas to find the best fit for your lifestyle and money goals. Don’t be afraid to switch things up if something isn’t working for you. <h3>4. Remember Why You Created Your Budget </h3>Sometimes it can be hard to stick to a budget when you lose sight of why you set financial boundaries for yourself in the first place. When you get the urge to veer from your budget and spend impulsively, try to pause and remind yourself of your original goal. You can try techniques like putting up sticky notes, creating a vision board, or sending yourself “countdown” reminders.[4]  <h3>5. Build in Some Fun </h3>Budgeting is a great way to save for serious goals and keep up with your bills. But it doesn’t have to be all work and no play. Try adding some fun things to your budget like an occasional meal out, special gift, or other treat. Rewarding yourself occasionally, like getting takeout only on Fridays, can help give you something to look forward to. It also makes getting through a week (or month) of sticking to a budget a little bit easier.  The <h2>Bottom Line </h2>Making a realistic budget often involves setting a goal, making a plan, and finding ways to stay the course. If you’re a beginner budgeter, remember it’s okay to start small. Try saving up $100, paying off a small bill, or skipping takeout on weeknights. Once you’re feeling more confident in sticking to a budget, you can work your way up to bigger financial goals. If you’re feeling overwhelmed about where to start, many professionals are available to help, including financial coaches, financial advisors, or certified public accounts (CPAs).[1][2][3] <hr/><ol><li><a href="https://www.consumerfinance.gov/about-us/blog/budgeting-how-to-create-a-budget-and-stick-with-it/">Consumer Financial Protection Bureau</a>. “Budgeting: How to create a budget and stick with it.” </li><li><a href="https://consumer.gov/managing-your-money/making-budget#what-to-know">Consumer.gov</a>. “Making a Budget.” </li><li><a href="https://www.consumerfinance.gov/about-us/blog/how-get-handle-debt/">Consumer Financial Protection Bureau</a>. “How to get a handle on debt.” </li><li><a href="https://files.consumerfinance.gov/f/documents/cfpb_your-money-your-goals_SMART-goals_tool_2018-11.pdf">Consumer Financial Protection Bureau</a>. “Setting SMART goals.” </li></ol>

What happens when you take money out of a CD before the maturity date? Here's everything you need to know, including how CD early withdrawal penalties are calculated, how to avoid these fees, and when incurring them might be a good idea.

If you need to withdraw your funds early (before the maturity date), it generally means paying a <a href="https://www.lendingclub.com/personal-savings/cd">certificate of deposit (CD)</a> early withdrawal penalty fee to the bank or credit union. This is often based on the term and amount of interest earned, but can also be a set amount determined by your financial institution. It’s important to understand what happens when you take money out of a CD before the maturity date, including how CD early withdrawal penalties are calculated, and how to avoid these charges. We also cover a few reasons why you might want to consider making an early withdrawal on a CD despite the penalty you would incur.<h2>What Is a CD Early Withdrawal Penalty?</h2>A CD early withdrawal penalty is the fee charged by your bank or credit union when you withdraw funds from a certificate of deposit account before the term ends. Financial institutions charge a fee for withdrawing CD funds early because when you open a CD you are agreeing to hold a fixed amount of money (principal) in the account for a predetermined length of time (term) in return for an agreed-upon fixed interest rate and yield (APY). The end of the fixed term is known as the maturity date.While a CD offers a low-risk way to earn a higher, fixed interest rate on your deposits, it also requires you to leave your money until the end of the term, which can range from a few months to several years. Often, CDs with longer maturity dates earn a higher interest rate (APY). If you wait until the CD maturity date, you can withdraw all or part of your original deposit plus earned interest without penalty.Banks and credit unions charge a CD early withdrawal penalty fee to comply with reserve requirements on time deposit accounts such as CDs. The amount of the CD early withdrawal penalty can vary based on the financial institution, CD terms, interest rate, and market conditions. If the penalty is more than your earned interest, you stand to lose some of your principal. It’s important to review your account agreement for CD early withdrawal policies specific to your bank and your account.<h2>What Types of Penalties Might You Have to Pay if You Withdraw Early?</h2>Before investing in a CD, it’s important to carefully review your account agreement and disclosures to understand how the early withdrawal penalty is calculated. Penalties vary by financial institution, and even between CDs offered by the same bank. Here are a few ways an early withdrawal penalty could be assessed.<h3>Monetary Penalty</h3>You might be charged a percentage of interest based on the original principal or the amount withdrawn. This percentage-based fee may be calculated based on a set number of days, weeks, or months.  For instance, depending on your financial institution, you could be charged the equivalent of three months’ interest for an early withdrawal from a CD that matures in six months or less. If you have five year CD, you might pay a penalty of 12 months’ interest or more. Or, your bank could charge a specific dollar amount such as the full amount of interest you’ve earned as of the date of the withdrawal.  Typically, CDs with longer maturity dates have higher early withdrawal penalties. <h3>Loss of Bonus</h3>On CDs offering a cash bonus, you could lose any cash bonus you earned when you opened or reinvested in the CD as penalty for early withdrawal. <h2>How Does your Financial Institution Calculate Early CD Withdrawal Penalties?</h2>If you’re thinking about making an early withdrawal, knowing how your financial institution will calculate a CD early withdrawal penalty charge can help you make an informed decision. Here are some of the ways they can be calculated:A. Some financial institutions charge for a certain number of days’ worth of interest calculated on the original CD deposit amount as a penalty for early withdrawals. <blockquote>Penalty = Interest Rate ÷ 365 (or 366 in a leap year) × Penalty Days × Original Principal Balance</blockquote>For example, let’s say your bank charges an early withdrawal fee of 60 days of interest on a 24-month CD with an APY of 4.50% and you’ve deposited $10,000. Here’s how the penalty would be calculated:<blockquote>Penalty = .045 ÷ 365 x 60 x $10,000Penalty = $73.97</blockquote>B. Some financial institutions calculate the penalty based on the amount of deposit being withdrawn from the account.<blockquote>Penalty = Interest Rate ÷ 365 (or 366 in a leap year) × Penalty Days × Amount Withdrawn</blockquote>Let’s say you withdraw $2,000 from the CD described in A above and the penalty is 60 days’ interest on the amount withdrawn. Here’s how the penalty would be calculated:C. And if your penalty is calculated in months, instead of days, here’s how that would be calculated:<blockquote>Penalty = Interest Rate ÷ 12 × Penalty Months × Original Principal Amount (or Amount Withdrawn)</blockquote>Using our example of a 24-month CD with an APY of 4.50% and a $10,000 initial deposit. If the early withdrawal penalty is 3 months’ interest on the original principal, here’s how the penalty would be calculated:<blockquote>Penalty = .045 ÷ 12 x 3 x $10,000Penalty = $112.50</blockquote><h2>When Could an Early Withdrawal Be a Good Idea?</h2>While an early withdrawal from a CD account generally results in a penalty fee, there are some circumstances where it may be your better, or only, option. Here are a few situations where you might want, or need, to consider making an early withdrawal on a CD account:<ul><li>You need to cover a large emergency expense. If you were to put an unexpected medical bill on a higher-interest revolving credit card balance, your interest expense on the card could potentially be more costly than incurring the CD early withdrawal penalty and using some or all the funds to help you pay off the medical bill. </li><li>You find a better investment that could earn more yield. If rates have risen sharply since you made your CD deposit and you think taking advantage of a new, different opportunity could outweigh the early withdrawal penalty you would incur by accessing your CD money before maturity, it might be worth considering taking.</li><li>You need extra money to cover a down payment. If putting the money in your CD toward a down payment on a new home could reduce the size of your loan and save you money on the cost of financing, making the early withdrawal might be worth it.</li><li>You forgot to close your CD account before the maturity date and you don’t want to leave your money invested for another term.</li><li>Your accounts or property are garnished. In certain cases, such as when a garnishment or levy has been issued against your income or assets, early withdrawal from your CD may be your only option if you don’t otherwise have the money to satisfy the debt owed.</li></ul><h2>How to Avoid CD Early Withdrawal Penalties</h2>Giving yourself more flexibility in your CD selection can help you avoid paying early withdrawal penalties, sometimes even if you need to access your money before the CD matures.<h3>Know when an early withdrawal penalty applies. </h3>Carefully read your CD account agreement for information to learn what could trigger an early withdrawal penalty or fee. Even if the bank doesn’t use the word “penalty,” it must explain under what conditions you stand to lose your principal or interest earned if you withdraw your funds before the CD maturity date.<h3>Know your maturity date. </h3>Generally, most banks and credit unions set up CDs so that they automatically renew, or rollover, at the end of the term unless you specifically tell them not to. If you have a CD that automatically rolls over and you forget to withdraw funds in time, the new CD will typically have the same term as the matured CD, however, the interest rate and yield could be lower. When a CD matures and automatically renews into a new CD, typically there is a grace period (between 5 and 15 days) during which time you withdraw your funds and close the CD without an early withdrawal penalty. <h3>Choose a no-penalty CD. </h3>Unlike a traditional CD, a no-penalty CD offers you the flexibility to withdraw your money (including interest earned) starting seven days after you make your initial deposit without paying an early withdrawal penalty. However, typically you can only make an early withdrawal of the full balance, not a partial balance. Also keep in mind, generally, no-penalty CDs offer lower APYs and shorter terms (usually one year). <h3>Build a CD ladder strategy. </h3>A CD ladder strategy involves splitting up your deposit into CDs with different maturity dates, allowing you to take advantage of higher long-term rates without locking up all your funds for longer than you would like. Having multiple CDs with carefully staggered maturity dates enables you make sure your never more than a few months away from being able to access your money without risk of early withdrawal penalty.<h3>Request a waiver. </h3>Some banks may waive early withdrawal penalties in certain situations, such as: <ul><li>Depositor is declared legally incompetent, becomes disabled, or dies</li><li>CD is retitled to a new owner without a change in term or interest rate (APY) </li><li>Withdrawal is required by court order</li><li>Widespread economic or market crises</li></ul><h2>The Bottom Line</h2>Certificates of deposit have the potential to help you <a href="/resource-center/personal-savings/what-is-a-high-yield-cd-and-how-does-it-work">reach your savings goals faster</a> compared to regular savings accounts. However, if you need to access your money before the CD maturity date, you may incur an early withdrawal penalty which could mean giving up some of your interest earned or losing some of your principal balance. Knowing when a CD early withdrawal penalty applies, staying on top of your maturity date, and choosing flexible CD options such as a CD ladder can all help you to maximize yields while maintaining a certain measure of “liquidity” and avoid a CD early withdrawal penalty should you need the money.

Related Resource Center

From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.

From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a <a href="/member-benefits/stackit/install?utm_source=Internal&utm_medium=Blog&utm_campaignid=stackit_launch">new browser extension</a> that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.<h2>Limited Time Offer to Double Your Cash Back Through 12/31/22</h2>Stackit is a free, new cash back and rewards program available to personal loan members that’s easy to download and install. Eligible members can activate their favorite offers with one click to start saving while stacking cash back offers with existing loyalty program rewards at eligible stores.“We’re relentless when it comes to giving customers more, and Stackit is a perfect example of this,” said Amber Carroll, SVP of Membership and Lifecycle Marketing. “Stackit appears as you shop so it’s easier to activate. You can redeem your cash back for gift cards from hundreds of online stores. And you can continue accumulating loyalty points from merchants and rewards from credit cards while we stack coupon savings and cash back earnings on top of all of it,” she said. “Stackit demonstrates our promise to help members make smart money moves that are both easy and rewarding.”To celebrate the new Stackit rewards program, LendingClub is offering its personal loan members double the cash back on eligible purchases made now through the end of the year. To start earning and stacking rewards, eligible members can simply <a href="/member-benefits/stackit/install?utm_source=Internal&utm_medium=Blog&utm_campaignid=stackit_launch">add the new Stackit Extension</a> to their browsers—doubling their earnings for a limited time through 12/31/22.* Cash back can be redeemed for e-gift cards through the Earnings Dashboard.<h2>New Name, Better Rewards</h2>Earlier this year, LendingClub soft-launched its exclusive member rewards program as a separate Chrome browser extension test that was made available to a small subset of customers. Drawing from these learnings,Stackit is LendingClub Bank’s new and improved rewards program featuring a new extension, expanded browser availability, and enhanced account integration that is rolling out to a wider member audience beginning in November.Currently, any LendingClub personal loan member can download and start using the new Stackit browser extension. (Users of the old LendingClub Chrome Extension can continue earning cash back through 11/30/22; any amount remaining in users’ accounts after 11/30 will automatically be paid out via PayPal. Members are advised to add the new Stackit Extension to continue earning cash back and rewards, including double cash back, on future purchases.) In addition to Chrome,Stackit expands browser availability to Safari and Edge, and enables members to view recent transactions and cash back earnings inside their LendingClub account instead of a third-party site. Planned rollouts to LendingClub members with Auto, Deposit, and other accounts beyond personal loans are expected, however, timing is still under consideration.*Double Cash Back Offer on eligible transactions expires 12/31/22. See <a href="/legal/terms-of-use">Terms of Use</a> for full details. Offer is subject to change without notice.Stackit is a non-deposit product offered by LendingClub Bank.

Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals. 

Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals. However, recent <a href="https://www.fdic.gov/analysis/household-survey/">FDIC research</a> shows approximately 7.1 million Americans are “unbanked,” meaning they do not have a basic checking or <a href="/personal-savings">savings account</a>.<h2>Being Unbanked Increases Costs for Families</h2>Reasons for being unbanked (and underbanked) vary from not having enough money to meet a minimum balance and high or unpredictable fees, to having a history of credit, ID, or banking problems, and/or a general distrust of financial institutions.As a result, this drives unbanked individuals to expensive, alternative financial outlets—such as check cashers, payday lenders, and pawn shops that charge high fees for financial products and services—to manage their money. Such fringe financial “solutions” hold people back from making meaningful financial progress, many of whom are living on low incomes and, likely, already struggling to make ends meet. Without a <a href="/personal-checking/rewards-checking">checking account</a>, these families wind up overpaying for basic financial transactions, making it difficult for them to build savings and assets over time.<h2>More Rewarding Banking for More People</h2>In light of this, we’re proud to share that recent improvements to LendingClub Bank’s <a href="/personal-checking/rewards-checking">award-winning Rewards Checking</a> has earned us official certification by the national Cities for Financial Empowerment Fund as meeting the BankOn National Standards for trust and affordability for consumer transactional accounts.Key features of our award-winning Rewards Checking account include:<h3>Low Minimum Opening Balance</h3><ul><li>Access Rewards Checking with an opening deposit of only $25</li><li>Freedom from Fees Save more of your hard-earned money with no overdraft, monthly maintenance, and incoming wire transfer fees1</li></ul><h3>Unlimited Cash Back</h3><ul><li>Earn <a href="/personal-checking/rewards-checking">unlimited 1% cash back</a> on Qualified (signature-based) Purchases when using your Rewards Checking debit card2</li></ul><h3>Free ATM Access</h3><ul><li>Enjoy <a href="/help/checking-accounts-faq/how-do-i-earn-atm-rebates-on-my-checking">ATM access with no LendingClub ATM fees</a>, plus get unlimited ATM fee rebates on fees charged by other banks3</li></ul><h3>Get Your Paycheck Early</h3><ul><li>Set up direct deposit into your account and you could be eligible to receive your money up to 2 days earlier4</li></ul><h3>Earn Interest</h3><ul><li>Earn an APY that’s more than the national average with account balances of at least $2,5005</li></ul><h3>FDIC Insurance</h3><ul><li>Rest easy knowing your deposits are FDIC-insured up to the maximum amount allowed—$250,000 per depositor for each ownership category</li></ul><h3>Best Online Experience</h3><ul><li>Based on our easy-to-use mobile app and award-winning <a href="/personal-checking/rewards-checking">online checking account</a>, NerdWallet named us Best Bank or Credit Union for Online Experience</li></ul><h2>What Our Members Say</h2>It’s important knowing we’re offering products and services that are helping to improve the financial lives and stability of all Americans, including unbanked and underbanked individuals and families, in every community across the United States.Here’s what some of our members have to say about their Rewards Checking experience with LendingCLub Bank:“I never knew how much money I was losing with my old bank whenever I used an ATM. [LendingClub Bank] reimburses fees from ATM’s and now I look forward to getting the cash back every month.”Robin, a LendingClub Bank Member“The rewards checking account with cash back every month has helped me ditch my credit card and debt.”Lauren, a LendingClub Bank MemberRead more member reviews.<h2>Your Financial Well-Being Matters to Us</h2>At LendingClub Bank, making <a href="/personal-checking/rewards-checking">checking accounts</a> more rewarding for more people is an example of our belief that financial well-being should be attainable for everyone—not just for those who can afford it. Everything we do is centered around empowering our members to meet their personal financial goals by enabling access to a broad range of financial products, services, and educational resources, all designed to help them pay less when borrowing and earn more when saving. Testimonials reflect the real-life experiences of individuals who used our products; however, individual results may vary.<hr/><h4>Terms and Conditions</h4>Accounts subject to approval. $25 minimum opening deposit required. See Product Terms &amp; Conditions for additional details.1. Miscellaneous fees may apply. View Product Terms &amp; Conditions for complete details.2. The Debit Card Rewards Program (“Cash Back Rewards”) provides 1.00% cash-back on all Qualified Purchases using a debit card tied to an Eligible Account.Eligible Accounts are: Rewards Checking accounts that meet the following requirements for the calendar month in review:1). Maintain an average monthly balance of at least $2,500.00; or 2). Receives at least $2,500.00 in Qualifying Direct Deposits.Qualifying Direct Deposits are defined as: Recurring Automated Clearing House (ACH) credits, including payroll, pension or government payments (such as Social Security) made by your employer, or an outside agency. We may require documentation to verify that credits are Qualifying Direct Deposits. Qualifying Direct Deposits do not include peer to peer payments or ACH transfers (funds transfers) from your external accounts.Qualified Purchases are defined as: Signature-based purchases made using the debit card tied to an Eligible Account. These are “credit” purchases that can be made in stores and online. To make a signature-based purchase, select “credit” rather than debit at point-of-sale kiosks. The “credit” option is most often pre-selected when making purchases online using a debit card. Online subscription payments may not be considered signature-based purchases. The payment transaction type (signature-based or other) is ultimately decided by the merchant and is based on how the transaction is transmitted at the time of processing. Qualified Purchases do not include: (1) any goods or services purchased that are returned or otherwise credited to your Eligible Account; (2) unlawful purchases; or (3) purchases of currency, cash or cash equivalents (including, without limitation, currency from the U.S. Mint, Travelers Checks, gift cards, cryptocurrency, casino chips, peer to peer payments, prepaid debit cards, account openings, loan payments, or other cash equivalents). We may report the value of Cash Back Rewards to the IRS as required by law. Any client whose tax status would require us to impose tax withholding of any sort will not be eligible for Cash Back Rewards. Accounts are reviewed after the end of each month. Any earned Cash Back Rewards will be credited to your account on or before the 10th calendar day of the next calendar month. The Eligible Account must be open and active at the time the Cash Back Reward is credited.3. LendingClub does not charge a fee for using another bank’s ATM. Plus, get unlimited automatic ATM surcharge rebates for ATM fees other banks charge you. ATM surcharge rebates apply to cash withdrawals from a Rewards Checking account. ATM fees will be rebated at the end of each statement cycle. Excludes international exchange fees. LendingClub makes its best effort to identify those ATM fees eligible for rebate. In the event that you have not received a rebate for a fee you believe is eligible, please contact Customer Service at 800.242.0272. LendingClub reserves the right to modify or discontinue the ATM surcharge rebate program at any time. Out-of-network ATM fees cost $2.50 on average — source: CNBC as of 01/26/2022. If someone were to use an out-of-network ATM 6 times per month at an average fee of $2.50 per withdrawal, they would spend $180 in ATM fees in 12 months.4. Any account features that enable you to receive direct deposits, or that enable direct deposit funds to be made available to you early, are contingent upon and subject to the payor’s support of such features. 5. Annual Percentage Yield (APY) accurate as of 8/1/2022. Rate tiers are as follows: 0.00% APY applies to balances of $0.00–$2,499.99, 0.10% APY applies to the entire balance on balances of $2,500.00–$99,999.99, and 0.15% APY applies to the entire balance of $100,000.00 or more. Rates are variable and are subject to change, at the discretion of the bank and without notice, at any time after an account is opened. Fees may reduce earnings.

Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.

Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.As the leading digital marketplace bank in the U.S. built on the belief that innovative, creative solutions deliver more value and a better experience, we’re always looking for new ways to provide more. In early 2021, LendingClub became a bank holding company operating a national bank, allowing us to expand our products and level the playing field for everyone.  “Every day we help members leverage their money so they can earn more when saving and pay less when borrowing,” said Amber Carroll, Senior Vice President of Membership &amp; Lifecycle Marketing at LendingClub. “We&#39;re working to redefine banking, which means ensuring our interests are well aligned with those of our members and introducing new ways to better serve their needs.” Since the beginning of the pandemic, how we work, live, and manage our finances has evolved in ways most of us would never have imagined. Increasingly, more Americans across varying credit profiles are struggling to stretch their dollars between paychecks. According to a recent survey from LendingClub and PYMNTS, even among workers earning more than $100,000 per year nearly half are living paycheck to paycheck.  At LendingClub, we’re inspired every day by our members who continue to strive for financial well-being during these unprecedented times—such as by consolidating their credit card debt into a single, more manageable payment, refinancing their auto loan to free up room in their budget, or taking advantage of a CD or high-yield savings account to invest in their future. The Club is working hard to help members reach their goals and we’re incredibly proud to help simplify their path. As one of member recently shared: “This is the third time I have utilized LendingClub&#39;s great rates and lending plans to assist with home repairs and debt consolidation. Their application and payment processes are quick and simple to use. I have saved so much time and money using this funding!” — Christine, a member from Texas We believe everyone deserves a better financial future. If you’re ready to improve your financial well-being and are not already a member of the Club, we can help. From banking smarter with your <a href="/personal-deposits/online-banking">personal checking and savings</a>, to working toward larger financial goals—like <a href="/personal-loan">consolidating debt</a>, <a href="/auto-refinancing">refinancing an auto loan</a>, or making home improvements—you can easily check your rate for a personal loan in minutes, with no impact to your credit score. Thanks again to all of our members for helping us achieve this incredible milestone.

In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 

In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. During the webinar, Anuj Nayar, our Financial Health Officer, discussed:<ul><li>Our journey to get to where we are today </li><li>Lessons learned from our 15-year history as a fintech pioneer</li><li>How we’re leveraging our digital marketplace bank to further our mission to help Americans on their path towards financial health</li><li>We recently reported Q4 2021 and year-end earnings</li><li>New data on the financial health of U.S. consumers from our latest Paycheck-to-Paycheck report</li></ul>A historic milestone, as one of the first fintech company to acquire a national bank we’ve paved the way for other fintechs to follow suit. With 15 years under our belt, more than 3.9 million members, and over $70 billion in loan originations, the marriage of LendingClub’s marketplace fintech business with all the benefits of being a bank is fundamentally changing the nature of our business and influencing change across the banking industry as a whole. We’re also creating something new for our members -- a bank that puts the customer at the center of what we do. <a href="https://vimeo.com/686043451">Check out the video below to learn more.</a>

LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  

LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  This includes our yacht loan business. Yacht loans are simply not in line with our mission to help everyday Americans on their path to financial health and we plan to grow our auto refinance business to take its place.  During the review, we also thoroughly examined relationships and operating activities for the fintech partners. As a result of our review, we are asking certain partners to modify their activities and/or operations to match expectations and contractual commitments, and we have begun exiting certain partners. As part of the ongoing dialogue with these partners, we have discussed transition plans or operational changes that could impact the services available to these partners and their customers.   As a pioneer in this space, we have a unique perspective. We operated for 15 years as a fintech with a partner bank model and now we operate as a fintech, a bank, and a partner bank. We work hard at LendingClub to maintain and build a robust, secure, compliant and scalable enterprise. We are guided by our core values, our extensive experience, our deep data set and technology investments, and governed by strong controls, to deliver on behalf of our members, communities, shareholders, partners, and team members.  These business model changes will have no material effects on our business operations and we plan to report more details when we issue our Full Year 2021 and Q4 earnings in a few weeks. Scott Sanborn CEO  LendingClub<hr/>Safe Harbor StatementSome of the statements above, including statements regarding  the effect on our business operations as a result of the business model changes, are &quot;forward-looking statements.&quot; The words &quot;anticipate,&quot; &quot;believe,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;intend,&quot; &quot;may,&quot; &quot;outlook,&quot; &quot;plan,&quot; &quot;predict,&quot; &quot;project,&quot; &quot;will,&quot; &quot;would&quot; and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include those factors set forth in the section titled &quot;Risk Factors&quot; in LendingClub&#39;s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission, as well as in LendingClub&#39;s future filings made with the Securities and Exchange Commission. LendingClub may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. LendingClub does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Related Impact

We offer several ways for you to make your monthly auto loan payment, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date.

We offer several ways for you to make your monthly auto loan payment, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date.<h3>Set up automatic payments</h3>Signing up for automatic payments means you won’t miss any payments, and you’ll save money on postage. You can set up autopay from your To-Do List after you apply. Once you sign up, we’ll debit your payment from your bank account each month. If you do not elect this option during the application, you can enroll after a loan is issued to you by visiting our servicing partner’s site: <a href="https://santanderconsumerusa.com/payments/auto-pay">https://santanderconsumerusa.com/payments/auto-pay</a> <h3>Pay online, by phone, or by check</h3>Once your loan documents are finalized, you’ll receive a welcome email or letter providing details on how to make your payments. You can also visit our servicing partner&#39;s site for payment options: <a href="https://santanderconsumerusa.com/payments">https://santanderconsumerusa.com/payments</a>. Payments and loan payoffs for Auto loans should be mailed to our servicing partner, Santander Consumer USA, at:Santander Consumer USA3000 Kellway Drive, Suite 120Carrollton, TX 75006If you need help or have any questions, please call 888-845-0010 Monday through Friday from 8 am to 4 pm Pacific Time.

LendingClub provides a year-end statement that summarizes your account activity, including how much interest you’ve earned and information regarding Notes tied to loans that have been charged off.

LendingClub provides a year-end <a href="/help/investing-faq/where-do-i-find-statements-and-forms">statement</a> that summarizes your account activity, including how much interest you’ve earned and information regarding Notes tied to loans that have been <a href="/help/investing-faq/what-do-the-different-note-statuses-mean">charged off</a>.Consult with your accountant or other tax advisors on how to properly type: asset-hyperlink id: 3qvoScA6m5AgjXtqJMLU6r on your annual Notes activity, including whether you can <a href="/help/investing-faq/what-affects-my-notes-portfolio-performance">claim losses from Notes</a> tied to charged-off loans.

Adding creditors to your balance transfer loan is easy.

Adding creditors to your balance transfer loan is easy. Just follow these steps to get set up:<ol><li>Sign into <a href="/auth/login">your Member Center</a> and go to your To-Do List.</li><li>Click Tell us which account to pay down.</li><li>Click Add an account. Enter your creditor&#39;s name, your account number, and the amount you’d like to pay. (Note: If more than one creditor has the same name, pick the one that’s closest to the information on your last statement.)</li><li>Add creditors until the Debt paid, in the bottom right of your screen, meets or exceeds the minimum amount. If you have a minimum, it’s at the top of the page.After you’ve added all the creditors you want to pay, click Continue.</li><li>Check to make sure you’ve entered all the creditors you want to pay. To add another creditor or make changes, click Edit Accounts.</li><li>When everything looks good, click Confirm.</li></ol>After you’ve confirmed your list, we’ll start reviewing it. You can’t change your list, so be sure to double check it before clicking Confirm.If your application gets approved, it takes several days to have money sent to your creditors. Keep making your regular payments until the creditor confirms you paid down your debt.To learn more about how your creditors get paid and how long it takes, see our article about balance transfer loans.<h2>Airline, retail, and reward cards</h2>If you’re adding a credit card to your list of creditors, the front of your card might not match any of the names listed. The list might show some cards by the issuer name, not the name of the program. You can typically find the issuer on the back of your card or your billing statement.<img src="//images.ctfassets.net/orqped9h4wgz/1F6tTVmO2EHjZe4j09fe7K/535321c36ebb2ae9ff6ec4e4b17316ce/Creditcard.png" alt=""/>Here’s a list of common rewards cards and the name of their issuer:<table><tr><td>Card name</td><td>Potential credit card name in the payment network</td></tr><tr><td>AAdvantage; Platinum Select or Executive</td><td>Citibank Credit Card</td></tr><tr><td>Gold Delta Skymiles</td><td>American Express</td></tr><tr><td>Hilton HHonors Reserve and Hilton HHonors Signature</td><td>Citibank Card</td></tr><tr><td>Hilton HHonors Surpass and Hilton HHonors American Express</td><td>American Express</td></tr><tr><td>Marriott</td><td>First USA / Chase Card</td></tr><tr><td>Southwest</td><td>First USA / Chase Card</td></tr><tr><td>Starwood</td><td>American Express</td></tr><tr><td>United MileagePlus; Explorer or Club</td><td>First USA / Chase Card </td></tr></table><h2>If your creditor isn&#39;t on the list</h2>Like rewards cards, sometimes bank credit cards are listed under names that don’t match the front of the card. If you can’t find the name of your credit card on the list, check the back of your card or a recent statement for the issuer name.Here’s a list of common bank cards and their issuer names:<table><tr><td>Card name</td><td>Potential credit card name in the payment network</td></tr><tr><td>Bank of America</td><td>MBNA Credit Card, Bank of America, Bank of America Visa 1</td></tr><tr><td>BankAmericard</td><td>MBNA Credit Card</td></tr><tr><td>Barclaycard</td><td>Barclays Bank Delaware</td></tr><tr><td>Capital One Quicksilver</td><td>Capital One</td></tr><tr><td>Chase Freedom, Sapphire, or Slate</td><td>First USA / Chase Card, Chase Manhattan Bank, JPM Chase Commercial Card</td></tr><tr><td>Citi or Citibank</td><td>Citibank Credit Card</td></tr><tr><td>Discover</td><td>Discover Card</td></tr><tr><td>Navy Federal Credit Union</td><td>Navy Federal Credit Union Visa, Navy Federal Credit Union </td></tr><tr><td>Synchrony Bank</td><td>GE Capital / GE Money Bank</td></tr></table>If your creditor still doesn’t show up on the list, they might not be in our payment network. Creditors who are not in the network can’t get paid directly through a balance transfer loan, but we&#39;re always improving and may include your creditor in the future.

To qualify for a lending product with LendingClub Bank, you must...

<h2>Requirements</h2>To qualify for a lending product with LendingClub Bank, you must: <ul><li>Be a U.S. citizen or current resident (we accept applications from all U.S. states and Washington, D.C.; however,we don&#39;t accept applications from the U.S. territories)</li><li>Be at least 18 years old </li><li>Have a verifiable bank account</li></ul><h2>How your application is evaluated </h2>We look at several factors when reviewing your application, including:<ul><li>Information from your application</li><li>Information about you from credit bureaus</li><li>Your credit score</li><li>Other information that predicts the likelihood that you&#39;ll make on-time payments until your loan is fully repaid</li></ul>Applicants who qualify for the lowest rates have:<ul><li>A high credit score</li><li>A low percentage of debt compared to income</li><li>A long history of successful credit lines</li></ul>In some cases, you may need to <a href="/help/personal-loan-faq/how-do-i-apply-for-a-joint-loan">add a co-borrower to help you qualify</a>. If so, you can simply click Add a Co-Borrower on the <a href="/personal-loan">application page</a> to start a joint application.

You can partially or fully prepay your loan at any time with absolutely no prepayment penalty or fee.

You can partially or fully prepay your loan at any time with absolutely no prepayment penalty or fee.Any payments made in addition to your contractual monthly payment will be applied towards a reduction in the principal balance of your loan. Additional payments towards your principal balance allow you to repay your loan early by reducing the total amount of interest you&#39;ll pay. A full prepayment of your outstanding principal balance, plus any accrued interest or fees, will pay off your loan and bring an end to your monthly payments.

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