AskMyFinance

Author: AskMyFinance Editorial Team

  • Hard Inquiry vs Soft Inquiry: What’s the Difference and How Much Does It Hurt?

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    You have probably heard that applying for a credit card can lower your credit score. That happens because of something called a hard inquiry. But not all credit checks are the same. A soft inquiry does not affect your score at all.

    Here is everything you need to know about hard vs. soft inquiries in 2026.

    Hard Inquiry vs Soft Inquiry: Quick Comparison

    Feature Hard Inquiry Soft Inquiry
    Affects credit score? Yes No
    Visible to lenders? Yes No (only visible to you)
    Stays on report how long? 2 years 2 years (but invisible to lenders)
    Score impact? Usually 2–5 points Zero
    Requires your permission? Yes Sometimes no

    What Triggers a Hard Inquiry?

    Hard inquiries happen when a lender checks your credit to make a lending decision. You almost always have to authorize a hard pull. Examples include:

    • Applying for a credit card
    • Applying for a mortgage
    • Applying for an auto loan
    • Applying for a personal loan
    • Applying for student loans (private)
    • Renting an apartment (some landlords)

    What Triggers a Soft Inquiry?

    Soft inquiries do not require your permission in most cases. They do not affect your score. Examples include:

    • Checking your own credit score
    • Pre-approval offers from credit card companies
    • Employer background checks
    • Insurance company checks
    • Account reviews by your existing lenders

    How Much Does a Hard Inquiry Hurt?

    Most hard inquiries lower your score by 2 to 5 points. The impact is small and temporary. Your score usually recovers within a few months. One or two hard inquiries per year should not worry you.

    The impact is bigger if you have a thin credit file. With less history, each inquiry takes up more relative weight. If you have a long, strong history, you may barely notice the drop.

    How Long Does a Hard Inquiry Stay on Your Report?

    Hard inquiries stay on your credit report for two years. But they only affect your score for about 12 months. After one year, the scoring weight drops significantly.

    The Rate Shopping Exception

    Shopping for a mortgage or auto loan often involves multiple lenders checking your credit. FICO and VantageScore both have a rate-shopping window. Multiple mortgage or auto loan inquiries within a 14 to 45-day window count as just one inquiry.

    This means you can shop around for the best loan rate without getting punished for it. Always use this window when comparing lenders.

    How Many Hard Inquiries Is Too Many?

    There is no hard rule. But lenders may view five or more inquiries in a short period as a red flag. It can look like you are in financial trouble. Try to space out your credit applications.

    To understand how credit checks relate to your mortgage eligibility, see our guide on what credit score you need to buy a house. For full credit improvement strategies, read how to improve your credit score in 2026. And once your score is strong, compare the best cash back credit cards for 2026.

    Frequently Asked Questions

    What is a hard inquiry on a credit report?

    A hard inquiry happens when a lender checks your credit to decide whether to approve your application. It can lower your score by 2–5 points and stays on your report for two years.

    Does checking your own credit score cause a hard inquiry?

    No. Checking your own credit score is always a soft inquiry. It does not affect your score in any way.

    How long do hard inquiries affect your credit score?

    Hard inquiries affect your score for about 12 months. They appear on your report for two years, but their scoring impact fades after one year.

    What is the rate shopping window for mortgages?

    FICO allows a window of 14 to 45 days for mortgage, auto, and student loan inquiries to count as one inquiry. This lets you compare lenders without multiple score drops.

    Can I remove a hard inquiry from my credit report?

    You can dispute an unauthorized hard inquiry and have it removed. But legitimate hard inquiries that you authorized cannot be removed early. They fall off after two years.

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  • Net Worth Calculator: How to Track and Grow Your Wealth in 2026

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    Your net worth is one of the best measures of financial health. It is simple to calculate. And tracking it over time shows you if you are moving in the right direction.

    This guide explains how to calculate your net worth, what it means, and how to grow it.

    Data as of May 2026.

    What Is Net Worth?

    Net worth = Assets minus Liabilities.

    Assets are things you own that have value. Liabilities are debts you owe. If your assets are worth more than your debts, you have a positive net worth. If you owe more than you own, it is negative.

    What Counts as an Asset?

    • Cash and bank account balances
    • Investment and retirement accounts (401k, IRA, brokerage)
    • Home value (current market value)
    • Car value
    • Other property you own
    • Business ownership stakes

    What Counts as a Liability?

    • Mortgage balance remaining
    • Car loan balance
    • Credit card debt
    • Student loan balance
    • Personal loan balance
    • Any other debt you owe

    Net Worth Calculator Example

    Category Item Value
    Asset Checking account $3,000
    Asset Savings account $12,000
    Asset 401(k) $45,000
    Asset Home value $280,000
    Asset Car value $18,000
    Total Assets $358,000
    Liability Mortgage balance $210,000
    Liability Car loan $9,000
    Liability Credit card debt $2,500
    Total Liabilities $221,500
    Net Worth $136,500

    Average Net Worth by Age in the US (Federal Reserve Data, 2026)

    Age Group Median Net Worth Mean Net Worth
    Under 35 $39,000 $183,000
    35–44 $135,000 $549,000
    45–54 $247,000 $975,000
    55–64 $364,000 $1,566,000
    65–74 $409,000 $1,794,000
    75+ $335,000 $1,624,000

    The median is a better measure than the mean. The mean is skewed high by very wealthy households.

    Best Free Tools to Track Net Worth

    • Empower (formerly Personal Capital): Connects your accounts. Shows net worth in real time. Free to use.
    • Mint: Budget and net worth tracker. Easy to use. Free.
    • YNAB (You Need a Budget): Focused on budgeting, but also tracks net worth. Paid, but highly rated.
    • A simple spreadsheet: List your assets and liabilities. Update it monthly. Sometimes simple is best.

    How to Grow Your Net Worth

    • Build an emergency fund so you do not go into debt during a crisis. See how much you need in our emergency fund guide for 2026.
    • Pay down high-interest debt first. Credit card debt at 20%+ APR destroys wealth fast.
    • Contribute to your 401(k) and IRA. Tax-advantaged accounts are one of the fastest ways to grow wealth.
    • Use the 50/30/20 budget rule to make sure you are always saving a portion of income.
    • Consider opening a Roth IRA for tax-free growth in retirement.

    Frequently Asked Questions

    How do you calculate net worth?

    Net worth equals your total assets minus your total liabilities. Add up everything you own (savings, home, investments) and subtract everything you owe (mortgage, loans, credit card debt).

    What is a good net worth at age 35?

    The Federal Reserve reports that the median net worth for households under 35 is about $39,000. By 35–44, it rises to around $135,000. These are medians — do not panic if you are below. What matters is the direction you are trending.

    Does a car count as an asset for net worth?

    Yes. A car is an asset at its current market value. But cars depreciate quickly. The outstanding loan on the car is a liability. Many people owe more on a car than it is worth.

    What is a negative net worth?

    A negative net worth means you owe more than you own. This is common early in adulthood — especially with student loans or a new mortgage. Focus on paying down high-interest debt to turn it positive.

    How often should I calculate my net worth?

    Once a month or once a quarter is ideal. Tracking it regularly helps you spot trends and stay motivated.

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  • How to Create a Financial Plan in 2026: A Step-by-Step Guide

    See also: how AI is changing personal finance in 2026 — a guide to using AI tools as part of your financial planning process.

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    A financial plan is a road map for your money. It helps you know where you are, where you want to go, and how to get there. You do not need to be rich to have one. You just need a plan.

    This guide gives you a six-step framework you can follow in 2026.

    Step 1: Set Clear Financial Goals

    Start by writing down your goals. Be specific. Do not just say “save more money.” Instead, say “save $10,000 for an emergency fund by December 2026.”

    Break goals into three buckets:

    • Short-term (under 1 year): Build an emergency fund. Pay off a credit card. Save for a vacation.
    • Mid-term (1–5 years): Save for a car. Build a down payment. Pay off student loans.
    • Long-term (5+ years): Retire comfortably. Buy a home. Build generational wealth.

    Step 2: Build a Budget

    A budget tells your money where to go. Without one, you will wonder where it went.

    The simplest budget is the 50/30/20 rule:

    • 50% for needs (rent, food, utilities)
    • 30% for wants (dining out, entertainment)
    • 20% for saving and debt payoff

    Learn more about this approach in our guide to the 50/30/20 budget rule. For tools to make budgeting easier, check out the best budgeting apps of 2026.

    Step 3: Build an Emergency Fund

    Before investing, build a safety net. Most experts say three to six months of expenses. If your job is unstable, aim for six to twelve months.

    Keep your emergency fund in a high-yield savings account. It should be accessible but separate from your spending account. Read our full guide on how much to save in your emergency fund.

    Step 4: Pay Down High-Interest Debt

    Any debt above 7% interest rate is expensive. Credit card debt is usually 20–30% APR. That is wealth destruction. Pay it down as fast as possible before investing.

    Use one of these two methods:

    • Avalanche method: Pay the highest interest debt first. Saves the most money.
    • Snowball method: Pay the smallest balance first. More motivating for some people.

    Step 5: Start Investing

    Once you have an emergency fund and high-interest debt is gone, start investing. Begin with your employer’s 401(k) — especially if they match contributions. Free money is hard to beat.

    Then open a Roth IRA. It grows tax-free and lets you take out money tax-free in retirement. Read our step-by-step guide to how to open a Roth IRA in 2026.

    Check how you are tracking by age with our guide on how much you should have saved for retirement by age.

    Step 6: Protect What You Have Built

    Insurance protects your plan from disasters. Make sure you have:

    • Health insurance: A major illness without coverage can wipe out savings.
    • Life insurance: If others depend on your income, term life insurance is affordable and essential.
    • Disability insurance: Your income is your biggest asset. Protect it.

    Free Financial Planning Tools

    • Empower (Personal Capital): Portfolio tracker and retirement planner. Free.
    • Fidelity Planning Tools: Free retirement planning calculators at Fidelity.com.
    • Schwab Financial Planning: Free consultations for Schwab account holders.
    • NerdWallet Planner: Free goal-based planning tools online.

    When to Hire a Financial Advisor

    You do not always need one. But consider hiring a fee-only fiduciary advisor when:

    • You have a major life change (marriage, divorce, inheritance, retirement)
    • Your financial picture is complex (business ownership, multiple income streams)
    • You are unsure how to handle a large sum of money

    Frequently Asked Questions

    What is a financial plan?

    A financial plan is a written strategy for your money. It covers your goals, budget, savings, debt payoff, investing, and protection. It gives you a clear path to follow.

    How much should I have in an emergency fund?

    Most experts recommend three to six months of living expenses. If your income is variable or your job is unstable, aim for six to twelve months.

    When should I start investing?

    Start investing once you have an emergency fund and have paid off high-interest debt. The earlier you start, the more time your money has to grow through compound interest.

    Do I need a financial advisor to create a financial plan?

    No. Many people create solid financial plans on their own using free tools. A financial advisor is most useful for complex situations, large sums, or major life transitions.

    What is the 50/30/20 rule?

    The 50/30/20 rule is a simple budgeting framework. You put 50% of income toward needs, 30% toward wants, and 20% toward savings and debt payoff.

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  • What Credit Score Do You Need to Buy a House in 2026?

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    Your credit score can make or break your mortgage. It affects whether you get approved. It also affects your interest rate. A higher score can save you thousands of dollars.

    Here is what you need to know about credit scores and home buying in 2026.

    Rates and figures as of May 2026.

    Minimum Credit Score by Loan Type

    Loan Type Minimum Credit Score Down Payment
    FHA Loan 500 (with 10% down) or 580 (with 3.5% down) 3.5%–10%
    Conventional Loan 620 3%–20%
    VA Loan (veterans) No official minimum (most lenders require 620) 0%
    USDA Loan (rural areas) No official minimum (most lenders require 640) 0%
    Jumbo Loan 700–720 10%–20%

    FHA Loans: Best for Lower Scores

    FHA loans are backed by the government. They allow lower credit scores than most loans. You can get an FHA loan with a score as low as 500. But you will need a 10% down payment at that score. With a 580 score, you only need 3.5% down.

    See the full FHA loan requirements for 2026 to learn more.

    Conventional Loans: Most Common Type

    Most homebuyers use a conventional loan. You need at least a 620 credit score. The higher your score, the better your rate. A score of 740 or above gets you the best rates on conventional loans.

    VA and USDA Loans: Zero Down Options

    VA loans are for veterans and active military. USDA loans are for homes in rural areas. Both allow zero down payment. Most lenders want to see a 620–640 score for these loans.

    Learn more in our guides to VA loan requirements and USDA loan requirements for 2026.

    How Your Credit Score Affects Your Mortgage Rate

    Your score does not just determine if you qualify. It also affects your rate.

    Credit Score Range Estimated 30-Year Rate (May 2026)
    760–850 ~6.50%
    700–759 ~6.75%
    660–699 ~7.00%
    620–659 ~7.50%
    580–619 ~8.25%

    A 0.50% rate difference on a $300,000 mortgage is about $100 more per month. Over 30 years, that is $36,000 extra. A better credit score saves real money.

    How to Improve Your Score Before Applying

    • Pay bills on time. Payment history is the biggest factor in your score.
    • Pay down credit card balances. Keep your usage below 30% of your limit.
    • Do not open new credit accounts. New accounts lower your average account age.
    • Check your credit report for errors. Mistakes happen. Dispute any errors you find.

    For a full guide, read how to improve your credit score in 2026.

    Frequently Asked Questions

    What credit score do I need to buy a house in 2026?

    It depends on the loan type. FHA loans require a 580 score for 3.5% down. Conventional loans need 620. VA and USDA loans have no official minimum but most lenders want 620–640.

    Can I buy a house with a 500 credit score?

    Yes, with an FHA loan. But you will need a 10% down payment and will likely pay a higher interest rate.

    How much does a low credit score cost on a mortgage?

    A lower credit score means a higher interest rate. On a $300,000 loan, going from a 620 to a 760 score could save you $50,000 or more over the life of the loan.

    How long does it take to raise your credit score to buy a house?

    It depends on your starting point. Small improvements can happen in 30–60 days. Major improvements, like going from poor to good credit, may take 6–24 months.

    Does getting pre-approved hurt your credit score?

    A mortgage pre-approval requires a hard inquiry, which may lower your score by a few points temporarily. Multiple mortgage inquiries within 45 days count as one inquiry under the rate-shopping rule.

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  • What Is a Good Credit Score? The Ranges Explained for 2026

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    Your credit score is a three-digit number. It tells lenders how likely you are to repay debt. A higher score means better loan rates, better credit card approvals, and sometimes even better insurance rates.

    Here is how credit scores work in 2026 — and what each range means for you.

    FICO Score Ranges Explained

    Score Range Rating What It Means
    800–850 Exceptional Best rates on everything. Instant approvals.
    740–799 Very Good Near-best rates. Easy approvals.
    670–739 Good Most loans approved. Decent rates.
    580–669 Fair Some approvals. Higher rates.
    300–579 Poor Few approvals. Highest rates or denial.

    What Is a Good Credit Score?

    FICO considers 670 and above to be “good.” Most lenders agree. With a score in the 670–739 range, you can get approved for most credit cards and loans. You will not always get the lowest rate, but you will qualify.

    A score of 740 or above is “very good.” At this level, you get near the best rates available. Many people at this level qualify for the best credit card offers.

    To reach “exceptional” at 800+, you need a long, clean credit history. Very few missed payments. Low credit utilization. And a mix of different account types.

    VantageScore vs FICO

    Most lenders use FICO. But some use VantageScore. The ranges are similar. Both go from 300 to 850. VantageScore uses the same data from your credit report. The main difference is in how they weigh certain factors.

    VantageScore Range Rating
    781–850 Excellent
    661–780 Good
    601–660 Fair
    500–600 Poor
    300–499 Very Poor

    What Each Range Means for You

    800–850: Exceptional

    You qualify for the lowest interest rates. You get approved quickly. Lenders compete for your business. This range is the goal for most people.

    740–799: Very Good

    You get almost the same treatment as the 800+ group. Rates may be slightly higher, but not by much. You can still get premium credit cards and the best mortgage rates.

    670–739: Good

    You will get approved for most products. Your rates will be reasonable. This is where most Americans fall. It is a solid place to be.

    580–669: Fair

    You can still get approved for some loans and credit cards. But you will pay more. You may also need to put down a larger deposit or pay a higher insurance premium.

    300–579: Poor

    Getting approved is hard. When you do, rates are very high. The best move is to focus on building credit before applying for new products.

    How to Improve Your Credit Score

    • Pay every bill on time
    • Keep credit card balances low
    • Do not close old accounts
    • Limit new credit applications

    For a full plan, read our guide on how to improve your credit score in 2026. If you are starting from zero, see how to build credit from scratch in 6 months. To start building with a card, look at the best secured credit cards for building credit in 2026.

    Frequently Asked Questions

    What is considered a good credit score in 2026?

    FICO considers 670–739 to be a good credit score. A score of 740 or above is very good, and 800 or above is exceptional.

    What is the average credit score in the US?

    The average FICO score in the US is around 714, which falls in the ‘good’ range. Most Americans are in a solid credit position.

    What credit score do you need for a credit card?

    Basic credit cards are available with a score as low as 580–620. Rewards cards and premium cards typically require 670 or above.

    Can I check my credit score for free?

    Yes. You can check your credit score for free through services like Credit Karma, Experian, or through many credit card issuers. Free checks do not hurt your score.

    How long does it take to get from poor to good credit?

    With consistent on-time payments and low balances, you may see meaningful improvement in 6–12 months. Going from poor to good credit typically takes 1–2 years.

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  • How Long Does It Take to Build Credit from Scratch?

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    Starting from zero credit can feel overwhelming. No score means no loans, no credit cards, no apartment — sometimes. But you can build solid credit in less than two years. Some people see real results in six months.

    Here is exactly what happens and how long it takes.

    The Credit Building Timeline

    Timeframe What Happens
    Month 1–2 Open a secured card or become an authorized user
    Month 3–6 Your first credit score appears (usually 580–620)
    Month 6–12 Score improves with on-time payments and low balances
    Year 1–2 Scores in the 650–720 range become possible
    Year 2+ Scores of 740+ are achievable with clean history

    When Does Your First Score Appear?

    FICO needs at least one account that is at least six months old. Once you have that, your score will show up. Most people see their first score between three and six months after opening their first credit account.

    Your starting score is usually in the “fair” range — around 580 to 620. This is normal. It takes time to build a strong history.

    Fastest Ways to Build Credit

    1. Secured Credit Card

    A secured card requires a cash deposit. That deposit becomes your credit limit. You use the card like normal. The bank reports your payments to the credit bureaus. Pay on time and keep your balance low. This is the most reliable method for building credit fast.

    See the best secured credit cards to build credit in 2026.

    2. Become an Authorized User

    Ask a parent, spouse, or trusted friend to add you to their credit card. You do not even need to use the card. Their payment history on that account shows up on your report. This can give you a score boost quickly — sometimes within 30 days.

    Make sure the primary cardholder has a good history. A bad account will hurt you, not help you.

    3. Credit Builder Loan

    Some credit unions and online lenders offer credit builder loans. You make payments on the loan. The money is held in a savings account. When the loan is paid off, you get the money. Along the way, every on-time payment builds your credit.

    4. Report Rent and Utilities

    Services like Experian Boost and Rental Kharma let you report rent and utility payments to the credit bureaus. This can raise your score quickly if you pay on time.

    What Hurts Credit Building

    • Late payments: One missed payment can drop a new score significantly.
    • High utilization: Keep your credit card balance below 30% of the limit. Below 10% is even better.
    • Too many applications at once: Each hard inquiry lowers your score slightly. Apply one account at a time.

    How Long Until You Can Get a Mortgage?

    For an FHA loan, you need at least a 580 score. That can happen in 6–12 months with consistent effort. For a conventional mortgage, you need 620 or above. A strong 700+ score for the best rates may take 18–24 months from scratch.

    Learn more in our guide to how to improve your credit score and what credit score you need to buy a house in 2026. Also consider the best cash back credit cards for 2026 once your score is strong enough.

    Frequently Asked Questions

    How long does it take to build credit from scratch?

    You can get your first credit score in 3–6 months. A good score of 670+ usually takes 12–24 months of consistent on-time payments and low balances.

    Can I build credit without a credit card?

    Yes. You can use a credit builder loan, become an authorized user, or report rent and utility payments through services like Experian Boost.

    What is the fastest way to build credit?

    Becoming an authorized user on someone else’s account is often the fastest method. You can sometimes see results in 30 days.

    What credit score do I start with?

    There is no starting credit score. You begin with no score at all. Once you have an account open for 6 months, your first score is calculated. It is usually in the 580–620 range.

    Does checking your credit score hurt it?

    No. Checking your own score is a soft inquiry. It does not affect your credit score. Only hard inquiries from lenders can lower your score.

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  • Best Online Banks 2026: No Fees, High Rates, and Great Apps

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    Online banks have changed the way people save and spend money. They have no big buildings to pay for. That means they pass the savings on to you. You get higher rates and fewer fees.

    In this guide, we looked at dozens of online banks. We picked the best seven for 2026. We compared rates, features, and apps.

    Rates and figures as of May 2026.

    Best Online Banks 2026 at a Glance

    Bank Savings APY Monthly Fee Best For
    Ally Bank 4.20% $0 Everyday savers
    SoFi 4.50% $0 All-in-one banking
    Chime 2.00% $0 Fee-free banking
    Marcus by Goldman Sachs 4.40% $0 High-yield savings
    Discover Bank 4.25% $0 Cash back on checking
    Varo Up to 5.00% $0 Young adults
    Current 4.00% $0 Teens and young adults

    1. Ally Bank

    Ally is one of the best-known online banks. It has no monthly fees. Its savings rate is strong. The app is easy to use. You can open multiple savings buckets for different goals.

    Pros: No fees. Solid APY. Great customer service. Good app.

    Cons: No cash deposits. No physical branches.

    Best for: People who want a simple, reliable online bank.

    2. SoFi Bank

    SoFi offers one of the highest savings rates available. You need direct deposit to get the top rate. SoFi also offers checking, investing, and loans. It is a true all-in-one financial app.

    Pros: High APY with direct deposit. No fees. Investing tools included. Early paycheck with direct deposit.

    Cons: Top rate requires direct deposit setup.

    Best for: People who want banking and investing in one place.

    3. Chime

    Chime keeps things simple. No monthly fees. No minimum balance. They offer SpotMe, which covers small overdrafts at no charge. Credit builder tools are also included.

    Pros: No fees at all. SpotMe overdraft protection. Credit builder card available.

    Cons: Lower savings rate. No joint accounts.

    Best for: People who want zero fees and overdraft protection.

    4. Marcus by Goldman Sachs

    Marcus is the online bank from Goldman Sachs. It is built for saving. There is no checking account. But the savings rate is one of the highest you can find.

    Pros: Very high APY. No fees. FDIC insured. Trusted brand.

    Cons: No checking account. No mobile check deposit in all states.

    Best for: People who just want a top savings rate.

    5. Discover Bank

    Discover has both savings and checking. The checking account pays 1% cash back on debit card purchases. That is rare. Savings rates are competitive too.

    Pros: Cash back checking. Good savings APY. No fees. Nationwide ATM network.

    Cons: No physical branches. Some features lag behind competitors.

    Best for: People who want cash back on everyday spending.

    6. Varo Bank

    Varo can pay up to 5.00% APY. But you have to meet monthly requirements to earn the top rate. You need direct deposit and a positive balance at month end. Varo is also one of the first fintechs to get a national bank charter.

    Pros: Very high potential APY. FDIC insured. No fees.

    Cons: Top rate requires conditions be met. Requirements may be hard for some.

    Best for: People who can meet the direct deposit requirement.

    7. Current

    Current is built for younger users. It offers fee-free banking with a debit card. There are savings pods to help you set money aside. The app is clean and modern.

    Pros: No fees. Savings pods. Teen accounts available. Fast transfers.

    Cons: Savings rate is lower than top competitors.

    Best for: Teens, young adults, and families wanting teen accounts.

    How to Pick the Best Online Bank

    Ask yourself these questions:

    • Do I want the highest savings rate, or do I also need checking?
    • Will I have direct deposit? (Some top rates require it.)
    • Do I need cash back on purchases?
    • Do I want investing tools built in?

    If you just want to grow your savings, look at the best high-yield savings accounts of 2026. For locking in a rate, check the best CD rates in 2026. To keep your spending on track, try one of the best budgeting apps of 2026.

    Frequently Asked Questions

    What is the best online bank in 2026?

    SoFi and Ally are top picks for 2026. SoFi offers the highest savings rates and an all-in-one platform. Ally is great for simplicity and no fees.

    Are online banks safe?

    Yes. Most online banks are FDIC insured. That means your money is protected up to $250,000 per depositor if the bank fails.

    Do online banks have ATMs?

    Most online banks give you access to a large ATM network, usually 55,000 or more locations. Some also reimburse out-of-network ATM fees.

    What is a high APY for a savings account in 2026?

    In May 2026, a good savings APY is 4.00% or higher. The top online banks offer between 4.20% and 5.00% APY.

    Can I deposit cash at an online bank?

    Most online banks do not accept cash deposits directly. Some partner with retail locations like Walgreens or CVS for cash deposits.

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  • Best Checking Accounts 2026: No Monthly Fees and Great Perks

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    The best checking accounts charge you nothing. No monthly fee. No minimum balance. And many of them come with great perks like early direct deposit or cash back.

    We looked at dozens of options to find the top six checking accounts for 2026.

    Rates and figures as of May 2026.

    Best Checking Accounts 2026 at a Glance

    Account Monthly Fee ATM Network Overdraft Protection Best For
    Chime Checking $0 60,000+ SpotMe (up to $200) No fees at all
    Ally Interest Checking $0 43,000+ Yes (savings transfer) Earning interest on checking
    SoFi Checking $0 55,000+ Yes All-in-one banking
    Discover Cashback Checking $0 60,000+ No Cash back on spending
    Chase Total Checking $12 (waivable) 15,000+ Yes People who want branches
    Capital One 360 Checking $0 70,000+ Yes Large ATM network

    1. Chime Checking

    Chime has no fees at all. No monthly fee. No overdraft fee. No minimum balance. The SpotMe feature covers small overdrafts up to $200. You get paid up to two days early with direct deposit.

    Pros: Truly fee-free. SpotMe overdraft. Early pay. No minimum balance.

    Cons: Limited customer service hours. No interest on checking.

    Best for: Anyone who wants zero fees and overdraft protection.

    2. Ally Interest Checking

    Ally pays interest on your checking balance. Most banks do not. You also get free overdraft transfers from your Ally savings account. The app is clean and easy.

    Pros: Earns interest. No monthly fee. Overdraft transfers from savings. Strong app.

    Cons: No cash deposits. No branches.

    Best for: People who want to earn interest on their checking balance.

    3. SoFi Checking

    SoFi checking pays 0.50% APY on your balance. That is rare for a checking account. You also get early direct deposit. Pair it with SoFi Savings and you get one of the highest savings rates available.

    Pros: Earns APY. Early pay. No fees. Pairs well with SoFi Savings.

    Cons: Best rates require direct deposit.

    Best for: People who want both checking and high-yield savings in one app.

    4. Discover Cashback Checking

    Discover pays 1% cash back on up to $3,000 in debit purchases each month. That adds up fast. There are no monthly fees. The ATM network is large.

    Pros: 1% cash back on debit. No fees. Large ATM network.

    Cons: No overdraft protection. No interest on checking.

    Best for: People who spend regularly on their debit card.

    5. Chase Total Checking

    Chase is the largest bank in the country. You get access to over 15,000 ATMs and 4,700 branches. The $12 monthly fee is waived if you have direct deposit or a minimum daily balance.

    Pros: Huge branch and ATM network. Overdraft options. Trusted brand.

    Cons: $12 fee if requirements not met. Lower tech experience than fintechs.

    Best for: People who want physical branches and a big-name bank.

    6. Capital One 360 Checking

    Capital One 360 has the largest ATM network on this list — over 70,000 locations. There is no monthly fee. You can open a teen checking account too. The app is excellent.

    Pros: Massive ATM network. No fees. Teen accounts. Great app.

    Cons: No interest on checking. No cash back.

    Best for: People who use ATMs often or want a teen account.

    What to Look for in a Checking Account

    • No monthly fee: The best accounts are free. Avoid banks that charge fees.
    • Overdraft protection: Look for accounts that cover small overdrafts without charging fees.
    • ATM access: A big ATM network means fewer fees when you need cash.
    • Early direct deposit: Many online banks pay you two days before your official payday.

    Want to earn more on your savings? See our picks for the best high-yield savings accounts in 2026. For cash deposits or other savings tools, check out the best money market accounts of 2026. And for managing your spending, compare the best budgeting apps of 2026.

    Frequently Asked Questions

    What is the best no-fee checking account in 2026?

    Chime and Capital One 360 are among the best no-fee checking accounts. Both have zero monthly fees and large ATM networks.

    What is overdraft protection?

    Overdraft protection covers a payment when you do not have enough money in your account. Some banks charge a fee for this. Others, like Chime, cover it for free up to a limit.

    Can I earn interest on a checking account?

    Yes. Ally and SoFi both pay interest on checking balances. Most traditional banks do not offer this.

    What is the difference between a checking and savings account?

    A checking account is for daily spending. A savings account is for storing money and earning interest. The best strategy is to use both together.

    Does Chase Total Checking have a monthly fee?

    Yes, Chase Total Checking has a $12 monthly fee. It is waived if you have qualifying direct deposits or maintain a $500 minimum daily balance.

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  • Chime vs SoFi: Which Online Bank Is Better in 2026?

    Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    Chime and SoFi are two of the most popular online banks in 2026. Both are free to use. Both have great apps. But they are built for different people.

    This guide breaks down every key difference. By the end, you will know which one is right for you.

    Rates and figures as of May 2026.

    Chime vs SoFi: Quick Comparison

    Feature Chime SoFi
    Savings APY 2.00% 4.50%
    Checking APY 0% 0.50%
    Monthly Fee $0 $0
    Overdraft Protection SpotMe up to $200 Yes (up to $50 free)
    Credit Builder Yes Yes
    Investing No Yes
    Loans No Yes (personal, student)
    Early Direct Deposit Up to 2 days early Up to 2 days early
    ATM Network 60,000+ 55,000+

    Savings Account: SoFi Wins

    SoFi pays 4.50% APY on savings. Chime pays 2.00%. The gap is large. If growing your savings is your main goal, SoFi is the better choice. Just note that SoFi’s top rate requires direct deposit.

    If you want to compare more savings options, see the best high-yield savings accounts in 2026.

    Checking Account: Tie

    Both accounts charge zero fees. Both give you a debit card. Both offer early direct deposit. SoFi pays a small amount of interest on checking. Chime does not. But SoFi’s checking interest rate is minor.

    Overdraft Protection: Chime Wins

    Chime’s SpotMe covers overdrafts up to $200 with no fee. SoFi covers up to $50 for free. If you ever run low on funds, Chime protects you more.

    Credit Builder: Tie

    Both banks have a credit builder card. These cards help you build credit without debt. You put money in a secured account and use the card against that balance. Both are solid options for building credit.

    Investing: SoFi Wins

    SoFi has a full investing platform built in. You can buy stocks and ETFs with no commission. Chime has no investing features. If you want one app for banking and investing, SoFi is the clear winner.

    Loans: SoFi Wins

    SoFi offers personal loans, student loan refinancing, and more. Chime does not offer loans. If you need to borrow, SoFi is the better choice.

    Which Should You Choose?

    Choose Chime if:

    • You want the best overdraft protection
    • You just need simple, fee-free banking
    • You are building credit for the first time

    Choose SoFi if:

    • You want the highest savings rate
    • You want investing built into your banking app
    • You need a personal loan or student loan refinancing
    • You want an all-in-one financial platform

    You may also want to compare more accounts. Check our full list of the best checking accounts for 2026. For savings-only options, see the best savings account interest rates in 2026. And if you want to lock in a rate, compare the best CD rates of 2026.

    Frequently Asked Questions

    Is Chime or SoFi better for savings?

    SoFi is better for savings. It offers 4.50% APY with direct deposit, compared to Chime’s 2.00% APY.

    Does Chime have investing?

    No. Chime does not offer investing. If you want to invest through your bank, SoFi is the better choice.

    Is SoFi a real bank?

    Yes. SoFi became a full FDIC-insured bank in 2022. Your deposits are protected up to $250,000.

    Does Chime charge any fees?

    No. Chime has no monthly fees, no overdraft fees, and no minimum balance requirements.

    Which is safer, Chime or SoFi?

    Both are FDIC insured. Your money is equally safe at both banks up to $250,000 per depositor.

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  • Best Business Checking Accounts for Freelancers and Sole Proprietors 2026

    This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you.

    Keep Your Business Money Separate

    Opening a dedicated business checking account is one of the smartest moves a freelancer can make. It makes bookkeeping easier, looks more professional to clients, and protects your personal finances. Here are the best options for freelancers and sole proprietors in 2026.

    Rates and figures as of May 2026.

    Top 6 Business Checking Accounts for Freelancers

    1. Relay — Best Overall for Freelancers

    Relay is built for small businesses and freelancers. It has no monthly fees and no minimum balance. You can open up to 20 checking accounts and 50 savings accounts in one place, which is perfect for budget envelopes. It connects directly to QuickBooks and Xero.

    Relay pays interest on savings accounts. It does not have physical branches, but everything is handled online.

    2. Found — Best for Self-Employed Tax Management

    Found is designed specifically for freelancers. It automatically sets aside a percentage of every deposit for taxes. It also has built-in bookkeeping tools, invoice creation, and Schedule C preparation. The basic plan is free. Found Plus costs $19.99/month and adds more tax features.

    If staying on top of quarterly taxes is your biggest challenge, Found is hard to beat.

    3. Mercury — Best for Tech-Friendly Freelancers

    Mercury is a favorite among startup founders and tech freelancers. It is free, has a clean interface, and includes virtual and physical debit cards. Mercury also offers Treasury accounts for higher yields on idle cash. API access is available for those who want to automate finances.

    4. Novo — Best for Simple, Fee-Free Banking

    Novo is a free business checking account with no monthly fees, no minimum balance, and free incoming wires. It integrates with Stripe, Square, Shopify, and QuickBooks. Novo reimburses ATM fees and offers Novo Reserves for setting aside money for taxes and expenses.

    5. BlueVine — Best for High APY on Business Checking

    BlueVine offers a business checking account with no monthly fees and one of the highest interest rates available on a business checking account. You earn a competitive APY on your balance without needing a savings account. It includes a debit card, free ACH transfers, and two free checkbooks.

    6. Lili — Best for Freelancers Who Want Everything in One App

    Lili combines banking, accounting, invoicing, and tax tools in one app. The free plan covers the basics. Lili Pro ($17/month) and Lili Smart ($35/month) add more accounting features, expense categorization, and tax forms. It is ideal if you want an all-in-one solution without connecting multiple apps.

    What to Look for in a Freelancer Business Account

    • No monthly fees (most freelancers do not need expensive bank features)
    • Good accounting integrations (QuickBooks, Xero, or built-in tools)
    • Easy invoicing or payment acceptance
    • Tax savings features (automatic tax set-aside)
    • No minimum balance requirements

    Quick Comparison

    Account Monthly Fee Best For
    Relay $0 Multi-account budgeting
    Found $0 / $19.99 Tax automation
    Mercury $0 Tech freelancers
    Novo $0 Simple fee-free banking
    BlueVine $0 High-yield checking
    Lili $0 / $17+ All-in-one app

    Once you have a business account set up, keep a look at your personal finances too. A high-yield savings account works well for your personal emergency fund. Freelancers especially need a strong emergency fund since income can be unpredictable. And with your business finances organized, it is a good time to review your budgeting tools to manage both income streams.

    Frequently Asked Questions

    Do I need a business checking account as a sole proprietor?

    You are not legally required to have one, but it is strongly recommended. Mixing personal and business finances makes bookkeeping harder and complicates your taxes.

    Can I open a business account without an LLC?

    Yes. All the accounts listed here allow sole proprietors to open a business account with their SSN or EIN.

    Which bank is best for freelancers who want tax help?

    Found is the standout choice. It automatically sets aside money for taxes and helps you prepare your Schedule C.

    What is an EIN and do I need one?

    An EIN is like a Social Security number for your business. Sole proprietors can often use their SSN instead, but getting a free EIN from the IRS adds privacy.

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