[{"data":1,"prerenderedAt":4014},["Reactive",2],{"/":3},{"data":4,"headers":3986,"perPage":4012,"total":4013},{"stories":5,"cv":3983,"rels":3984,"links":3985},[6,637,1367,2000,2802,3404],{"name":7,"created_at":8,"published_at":9,"updated_at":10,"id":11,"uuid":12,"content":13,"slug":627,"full_slug":628,"sort_by_date":69,"position":629,"tag_list":630,"is_startpage":28,"parent_id":631,"meta_data":69,"group_id":632,"first_published_at":633,"release_id":69,"lang":634,"path":635,"alternates":636,"default_full_slug":69,"translated_slugs":69},"Beginner’s Guide to Credit Card Benefits","2025-04-07T18:30:26.697Z","2025-12-26T13:44:58.683Z","2025-12-26T13:44:58.712Z",651798163,"210e605d-c8b3-4761-8e31-1662de7a7a5d",{"seo":14,"_uid":20,"hero":21,"author":30,"category":31,"featured":28,"imageAlt":18,"component":32,"blogContents":33,"canonicalTag":624,"publishedDate":625,"_editable":626},{"_uid":15,"title":16,"plugin":17,"og_image":18,"og_title":18,"description":19,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"77316249-bb90-485a-9a34-facfdf611141","Beginner’s Guide to Credit Card Benefits | Navient Marketplace","seo_metatags","","Credit card benefits can help you get more out of your everyday expenses. Read our guide to learn more about different rewards and how they work.","39f3568e-f888-4c3e-816f-3647f7efec59",[22],{"id":18,"_uid":23,"image":24,"intro":19,"classes":18,"_editable":25,"blogTitle":7,"component":26,"imageLink":27,"blendImage":28,"backgroundColor":29},"ee81b4ff-6c03-4123-98ae-73405dea4592","//a.storyblok.com/f/110029/5147x2895/0191f53121/beginner-guide-to-credit-card-benefits.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798163\"}-->","NriBlogHero","/images/beginner-guide-to-credit-card-benefits.png",false,"#F6F2F7","grace-guido","Credit Cards","NriBlogPost",[34],{"_uid":35,"color":36,"richText":37,"_editable":622,"component":623},"67b1c1a7-fbb7-4c3c-a267-87dc959687fb","#444444",{"type":38,"content":39},"doc",[40,55,82,96,103,115,136,185,192,199,208,215,222,242,252,259,267,274,281,298,315,335,344,351,358,365,372,381,397,404,413,420,471,480,487,575,584,604,613],{"type":41,"content":42},"paragraph",[43],{"text":44,"type":45,"marks":46},"Navient may receive compensation when you click on links associated with this Navient Marketplace. Navient is not being compensated for any application, quotation, or the purchase of any financial products.","text",[47,51],{"type":48,"attrs":49},"styled",{"class":50},"footer-text",{"type":52,"attrs":53},"textStyle",{"color":54},"rgb(0, 0, 0)",{"type":41,"content":56},[57,62,77],{"text":58,"type":45,"marks":59},"Welcome to the world of ",[60],{"type":52,"attrs":61},{"color":54},{"text":63,"type":45,"marks":64},"credit cards",[65,72,75],{"type":66,"attrs":67},"link",{"href":68,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.fdic.gov/resources/consumers/consumer-news/2021-11.html",null,"_blank","url",{"type":52,"attrs":73},{"color":74},"rgb(17, 85, 204)",{"type":76},"underline",{"text":78,"type":45,"marks":79},"! When used wisely, credit card rewards can help you get more out of your everyday purchases. Whether you are getting cash back on your groceries or collecting travel points for your next vacation, credit card rewards can be a game-changer. ",[80],{"type":52,"attrs":81},{"color":54},{"type":41,"content":83},[84],{"text":85,"type":45,"marks":86},"Browse credit cards on Navient Marketplace >>",[87,90,93,95],{"type":66,"attrs":88},{"href":89,"uuid":69,"anchor":69,"target":69,"linktype":71},"https://marketplace.navient.com/",{"type":48,"attrs":91},{"class":92}," text-button-2",{"type":52,"attrs":94},{"color":74},{"type":76},{"type":41,"content":97},[98],{"text":99,"type":45,"marks":100},"The best credit card for you will vary based on your financial goals. Regardless of which credit card you are using, it is important to use your credit card responsibly. ",[101],{"type":52,"attrs":102},{"color":54},{"type":104,"attrs":105,"content":107},"heading",{"level":106},2,[108],{"text":109,"type":45,"marks":110},"How Do Credit Card Rewards Work?",[111,113],{"type":112},"bold",{"type":52,"attrs":114},{"color":54},{"type":41,"content":116},[117,122,131],{"text":118,"type":45,"marks":119},"When you make purchases with your credit card, you are given ",[120],{"type":52,"attrs":121},{"color":54},{"text":123,"type":45,"marks":124},"“rewards” as an incentive",[125,128,130],{"type":66,"attrs":126},{"href":127,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.fdic.gov/consumers/consumer/news/march2019.html#:~:text=Rewards%20are%20incentives%20to%20use,to%20different%20terms%20and%20conditions.",{"type":52,"attrs":129},{"color":74},{"type":76},{"text":132,"type":45,"marks":133},". Reward types include cashback, points, and miles: ",[134],{"type":52,"attrs":135},{"color":54},{"type":137,"content":138},"bullet_list",[139,155,170],{"type":140,"content":141},"list_item",[142],{"type":41,"content":143},[144,150],{"text":145,"type":45,"marks":146},"Cashback:",[147,148],{"type":112},{"type":52,"attrs":149},{"color":54},{"text":151,"type":45,"marks":152}," a percentage of your purchase given back to you (free money).",[153],{"type":52,"attrs":154},{"color":54},{"type":140,"content":156},[157],{"type":41,"content":158},[159,165],{"text":160,"type":45,"marks":161},"Points:",[162,163],{"type":112},{"type":52,"attrs":164},{"color":54},{"text":166,"type":45,"marks":167}," redeemable for benefits including travel discounts, gift cards, and more. ",[168],{"type":52,"attrs":169},{"color":54},{"type":140,"content":171},[172],{"type":41,"content":173},[174,180],{"text":175,"type":45,"marks":176},"Miles:",[177,178],{"type":112},{"type":52,"attrs":179},{"color":54},{"text":181,"type":45,"marks":182}," redeemable for airline tickets or other travel-related expenses. ",[183],{"type":52,"attrs":184},{"color":54},{"type":41,"content":186},[187],{"text":188,"type":45,"marks":189},"For every dollar spent on your credit card, you are getting rewards back. That’s a win-win! ",[190],{"type":52,"attrs":191},{"color":54},{"type":41,"content":193},[194],{"text":195,"type":45,"marks":196},"In addition to earning rewards by spending on your card, you are typically given sign-on bonuses for opening up your credit card. Welcome bonuses can increase the value of your credit card for the first year. Bonuses can include no annual fees for a year, or cash-back for opening your card or spending a certain amount. ",[197],{"type":52,"attrs":198},{"color":54},{"type":104,"attrs":200,"content":201},{"level":106},[202],{"text":203,"type":45,"marks":204},"How to Find a Credit Card with the Best Rewards",[205,206],{"type":112},{"type":52,"attrs":207},{"color":54},{"type":41,"content":209},[210],{"text":211,"type":45,"marks":212},"The perfect rewards credit card for you will depend on your lifestyle and financial situation. Ask yourself, do you tend to spend more on groceries, dining out, or travel? Are you a frequent flyer or do you prefer road trips? Understanding what rewards would best complement your lifestyle can help you find the perfect card for you. ",[213],{"type":52,"attrs":214},{"color":54},{"type":41,"content":216},[217],{"text":218,"type":45,"marks":219},"Consider your goals when it comes to your credit card rewards. Are you looking to earn more on your spending with cashback or save up for a dream vacation? Knowing what you want out of a credit card rewards program can help tailor your search. ",[220],{"type":52,"attrs":221},{"color":54},{"type":41,"content":223},[224,229,237],{"text":225,"type":45,"marks":226},"Once you know what type of rewards you are interested in, ",[227],{"type":52,"attrs":228},{"color":54},{"text":230,"type":45,"marks":231},"Navient Marketplace",[232,234,236],{"type":66,"attrs":233},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":235},{"color":74},{"type":76},{"text":238,"type":45,"marks":239}," can help you compare credit cards from different credit card issuers. Search by reward type and compare annual fees, welcome offers, and the rewards rate. Navient Marketplace makes it easy to find a credit card with your goals in mind. ",[240],{"type":52,"attrs":241},{"color":54},{"type":104,"attrs":243,"content":245},{"level":244},3,[246],{"text":247,"type":45,"marks":248},"Different Types of Credit Cards Have Different Rewards",[249,250],{"type":112},{"type":52,"attrs":251},{"color":54},{"type":41,"content":253},[254],{"text":255,"type":45,"marks":256},"Now that you know about the different types of rewards, you may be wondering how different credit cards work. Let’s explore the different types of reward credit cards. ",[257],{"type":52,"attrs":258},{"color":54},{"type":41,"content":260},[261],{"text":262,"type":45,"marks":263},"Travel Credit Cards",[264,265],{"type":112},{"type":52,"attrs":266},{"color":54},{"type":41,"content":268},[269],{"text":270,"type":45,"marks":271},"Travel credit cards are best for those who enjoy traveling and can take advantage of travel rewards. Your points or miles can be redeemed for flights, hotel stays, rental cars, travel experiences, and more. ",[272],{"type":52,"attrs":273},{"color":54},{"type":41,"content":275},[276],{"text":277,"type":45,"marks":278},"If you are interested in a travel credit card, there are two different card types to choose from: ",[279],{"type":52,"attrs":280},{"color":54},{"type":137,"content":282},[283],{"type":140,"content":284},[285],{"type":41,"content":286},[287,293],{"text":288,"type":45,"marks":289},"Co-branded cards",[290,291],{"type":112},{"type":52,"attrs":292},{"color":54},{"text":294,"type":45,"marks":295}," are specific to a particular airline or hotel chain. When you earn rewards using a co-branded card, you can only redeem your rewards with that chain. Co-branded cards can offer higher rewards rates and exclusive perks such as priority boarding. However, this type of travel card limits your flexibility to travel with different chains and earn rewards. This type of card may work for you if you prefer to travel with one brand. ",[296],{"type":52,"attrs":297},{"color":54},{"type":137,"content":299},[300],{"type":140,"content":301},[302],{"type":41,"content":303},[304,310],{"text":305,"type":45,"marks":306},"General travel cards",[307,308],{"type":112},{"type":52,"attrs":309},{"color":54},{"text":311,"type":45,"marks":312}," offer a wider range of rewards and benefits for travel-related expenses. They are not tied to a specific travel brand and can be used across different airlines and hotels. This provides greater flexibility and more opportunity to earn rewards. However, unlike with co-branded cards, you likely will not have airline specific perks such as priority boarding or airport lounges. ",[313],{"type":52,"attrs":314},{"color":54},{"type":41,"content":316},[317,322,330],{"text":318,"type":45,"marks":319},"When ",[320],{"type":52,"attrs":321},{"color":54},{"text":323,"type":45,"marks":324},"looking for a travel credit card",[325,327,329],{"type":66,"attrs":326},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":328},{"color":74},{"type":76},{"text":331,"type":45,"marks":332},", you should consider airline partnerships, redemption flexibility, and annual fees. Some travel credit cards offer perks like airport lounge access and travel insurance. If you are a frequent traveler, using a travel credit card may be of great value.  ",[333],{"type":52,"attrs":334},{"color":54},{"type":104,"attrs":336,"content":337},{"level":244},[338],{"text":339,"type":45,"marks":340},"Points Credit Cards",[341,342],{"type":112},{"type":52,"attrs":343},{"color":54},{"type":41,"content":345},[346],{"text":347,"type":45,"marks":348},"With a points credit card, you earn ‘points’ for spending money on your card. Typically, you will earn at least 1 point per dollar spent on eligible purchases. Different cards will have different monetary values of their points. Some cards may offer more points for certain purchases like travel or specific merchandise.",[349],{"type":52,"attrs":350},{"color":54},{"type":41,"content":352},[353],{"text":354,"type":45,"marks":355},"You can redeem points for various rewards, including travel, gift cards, merchandise, statement credits, or cash back. With such a wide variety of perks, point credit cards may be perfect for you if you like to have options and flexibility with your rewards. ",[356],{"type":52,"attrs":357},{"color":54},{"type":41,"content":359},[360],{"text":361,"type":45,"marks":362},"Some potential downsides of this type of card include annual fees and high interest rates. While earning points can help you get more out of your spending, accruing interest on your card will negate the value of your rewards. ",[363],{"type":52,"attrs":364},{"color":54},{"type":41,"content":366},[367],{"text":368,"type":45,"marks":369},"While searching for a points credit card, look at the card’s point value, any restrictions on point redemption, and point expiration dates. Cards will also have different sign-on bonuses, typically offering large amounts of points when you first open your card. ",[370],{"type":52,"attrs":371},{"color":54},{"type":104,"attrs":373,"content":374},{"level":244},[375],{"text":376,"type":45,"marks":377},"Retail Credit Cards",[378,379],{"type":112},{"type":52,"attrs":380},{"color":54},{"type":41,"content":382},[383,392],{"text":384,"type":45,"marks":385},"Retail credit cards",[386,389,391],{"type":66,"attrs":387},{"href":388,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://credit.org/blog/should-you-consider-a-retail-credit-card/#:~:text=Retail%20cards%20might%20include%20cards,logo%2C%20which%20is%20valid%20anywhere.",{"type":52,"attrs":390},{"color":74},{"type":76},{"text":393,"type":45,"marks":394}," are offered by retail stores or online retailers. Retail chains may have credit cards that work only at their stores, or major credit cards which will work everywhere. Rewards for retail credit cards are usually discounts, cash back, or points specific to the retailer. ",[395],{"type":52,"attrs":396},{"color":54},{"type":41,"content":398},[399],{"text":400,"type":45,"marks":401},"This type of credit card is used to incentivize loyalty with its customers. If you frequently shop at a retailer and can take advantage of the discounts and rewards, it may be worth getting a retail credit card. However, remember to look at the terms and conditions. Retail credit cards often have higher annual percentage rates than other credit cards. ",[402],{"type":52,"attrs":403},{"color":54},{"type":104,"attrs":405,"content":406},{"level":244},[407],{"text":408,"type":45,"marks":409},"Other Types of Rewards",[410,411],{"type":112},{"type":52,"attrs":412},{"color":54},{"type":41,"content":414},[415],{"text":416,"type":45,"marks":417},"Other more niche credit cards include: ",[418],{"type":52,"attrs":419},{"color":54},{"type":421,"attrs":422,"content":425},"ordered_list",{"order":423},{"order":424},1,[426,441,456],{"type":140,"content":427},[428],{"type":41,"content":429},[430,436],{"text":431,"type":45,"marks":432},"Cash Back Credit Cards:",[433,434],{"type":112},{"type":52,"attrs":435},{"color":54},{"text":437,"type":45,"marks":438}," Gives cardholders a percentage of their purchase back as a cash reward. ",[439],{"type":52,"attrs":440},{"color":54},{"type":140,"content":442},[443],{"type":41,"content":444},[445,451],{"text":446,"type":45,"marks":447},"Dining and Entertainment Credit Cards:",[448,449],{"type":112},{"type":52,"attrs":450},{"color":54},{"text":452,"type":45,"marks":453}," Best for individuals who frequently dine out, go to concerts, or other types of entertainment. These cards may have higher reward rates at restaurants, bars, and entertainment venues. ",[454],{"type":52,"attrs":455},{"color":54},{"type":140,"content":457},[458],{"type":41,"content":459},[460,466],{"text":461,"type":45,"marks":462},"Gas Rewards: ",[463,464],{"type":112},{"type":52,"attrs":465},{"color":54},{"text":467,"type":45,"marks":468},"Offers increased rewards at gas stations. Some cards may also offer discounts on car maintenance or other car expenses. ",[469],{"type":52,"attrs":470},{"color":54},{"type":104,"attrs":472,"content":473},{"level":106},[474],{"text":475,"type":45,"marks":476},"Credit Card Best Practices",[477,478],{"type":112},{"type":52,"attrs":479},{"color":54},{"type":41,"content":481},[482],{"text":483,"type":45,"marks":484},"Credit card rewards can have great benefits when used responsibly. Remember to follow these tips while earning your rewards: ",[485],{"type":52,"attrs":486},{"color":54},{"type":421,"attrs":488,"content":490},{"order":489},{"order":424},[491,515,536,551],{"type":140,"content":492},[493],{"type":41,"content":494},[495,501,510],{"text":496,"type":45,"marks":497},"Pay Your Balance in Full and By the Due Date: ",[498,499],{"type":112},{"type":52,"attrs":500},{"color":54},{"text":502,"type":45,"marks":503},"Paying your entire balance on time",[504,507,509],{"type":66,"attrs":505},{"href":506,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/when-is-my-credit-card-payment-considered-to-be-late-en-79/",{"type":52,"attrs":508},{"color":74},{"type":76},{"text":511,"type":45,"marks":512}," each month avoids interest and late fees. This practice can also raise your credit score by showing responsible credit usage. Get the most out of your rewards without any interest or fees and look out for your credit history.",[513],{"type":52,"attrs":514},{"color":54},{"type":140,"content":516},[517],{"type":41,"content":518},[519,525,530],{"text":520,"type":45,"marks":521},"Understand the Rewards Program: ",[522,523],{"type":112},{"type":52,"attrs":524},{"color":54},{"text":526,"type":45,"marks":527},"When you get a new credit card, make sure you know how earning and redeeming your rewards works. This will help you make the most of your rewards. Keep an eye out for expiration dates or special promotions",[528],{"type":52,"attrs":529},{"color":54},{"text":531,"type":45,"marks":532},". ",[533,534],{"type":112},{"type":52,"attrs":535},{"color":54},{"type":140,"content":537},[538],{"type":41,"content":539},[540,546],{"text":541,"type":45,"marks":542},"Monitor Your Spending and Stay within Budget: ",[543,544],{"type":112},{"type":52,"attrs":545},{"color":54},{"text":547,"type":45,"marks":548},"Keep track of your spending and credit limit. Reviewing your credit card spendings every month can help understand how you spend your money and budget for the future. ",[549],{"type":52,"attrs":550},{"color":54},{"type":140,"content":552},[553],{"type":41,"content":554},[555,561,570],{"text":556,"type":45,"marks":557},"Regularly Review Your Credit Card Terms: ",[558,559],{"type":112},{"type":52,"attrs":560},{"color":54},{"text":562,"type":45,"marks":563},"Credit card terms can change",[564,567,569],{"type":66,"attrs":565},{"href":566,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/can-my-credit-card-company-change-the-terms-of-my-account-en-70/",{"type":52,"attrs":568},{"color":74},{"type":76},{"text":571,"type":45,"marks":572}," from when you first open your card. Stay on top of any changes to interest rates, fees, or the rewards program. ",[573],{"type":52,"attrs":574},{"color":54},{"type":104,"attrs":576,"content":577},{"level":106},[578],{"text":579,"type":45,"marks":580},"Find a Great Credit Card Today with Navient Marketplace",[581,582],{"type":112},{"type":52,"attrs":583},{"color":54},{"type":41,"content":585},[586,591,599],{"text":587,"type":45,"marks":588},"With Navient Marketplace, finding great credit card offers has never been easier. Search by reward type and compare card offers from different card issuers all in one place. ",[589],{"type":52,"attrs":590},{"color":54},{"text":592,"type":45,"marks":593},"Apply for a credit card",[594,596,598],{"type":66,"attrs":595},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":597},{"color":74},{"type":76},{"text":600,"type":45,"marks":601}," today!",[602],{"type":52,"attrs":603},{"color":54},{"type":41,"content":605},[606],{"text":607,"type":45,"marks":608},"Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.",[609,611],{"type":48,"attrs":610},{"class":50},{"type":52,"attrs":612},{"color":54},{"type":41,"content":614},[615],{"text":616,"type":45,"marks":617},"Navient has partnered with CardRatings for our OO\\lerage ot credit card products. Navient and CardRatings may receive a commission from card issuers. Opinions. reviews, analyses & recommendations are Navient's alone, and have not been reviewed, endorsed or approved by any of these entities. ",[618,620],{"type":48,"attrs":619},{"class":50},{"type":52,"attrs":621},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798163\"}-->","BlogText","https://www.marketplace.navient.com/blog/beginner-guide-to-credit-card-benefits/","Updated: September 20, 2023","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798163\"}-->","beginner-guide-to-credit-card-benefits","navient_marketplace/blog/beginner-guide-to-credit-card-benefits",-500,[],651751493,"98996961-0835-4585-9e3b-ecf4d20e0fe5","2023-09-26T16:15:36.239Z","default","blog/beginner-guide-to-credit-card-benefits/",[],{"name":638,"created_at":639,"published_at":640,"updated_at":641,"id":642,"uuid":643,"content":644,"slug":1360,"full_slug":1361,"sort_by_date":69,"position":629,"tag_list":1362,"is_startpage":28,"parent_id":631,"meta_data":69,"group_id":1363,"first_published_at":1364,"release_id":69,"lang":634,"path":1365,"alternates":1366,"default_full_slug":69,"translated_slugs":69},"Does Credit Score Affect Car Insurance?","2025-04-07T18:30:23.044Z","2025-12-26T13:44:59.193Z","2025-12-26T13:44:59.266Z",651798161,"5fa3b7df-270c-4450-9cf2-1a6e969bf719",{"seo":645,"_uid":20,"hero":648,"author":30,"category":653,"featured":28,"imageAlt":18,"component":32,"blogContents":654,"canonicalTag":1358,"publishedDate":625,"_editable":1359},{"_uid":15,"title":646,"plugin":17,"og_image":18,"og_title":18,"description":647,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Does Credit Score Affect Car Insurance? | Navient Marketplace","Your credit score can impact your car insurance rate. Learn how credit-based insurance scores work, and what you can do about it.",[649],{"id":18,"_uid":23,"image":650,"intro":647,"classes":18,"_editable":651,"blogTitle":638,"component":26,"imageLink":652,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/4800x3200/737bc2c543/does-credit-score-affect-car-insurance.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798161\"}-->","/images/does-credit-score-affect-car-insurance.png","Insurance",[655],{"_uid":35,"color":36,"richText":656,"_editable":1357,"component":623},{"type":38,"content":657},[658,666,687,694,703,719,728,735,783,784,791,812,821,828,906,907,914,923,950,971,978,1023,1024,1031,1040,1047,1054,1075,1084,1105,1197,1206,1213,1320,1329,1349],{"type":41,"content":659},[660],{"text":44,"type":45,"marks":661},[662,664],{"type":48,"attrs":663},{"class":50},{"type":52,"attrs":665},{"color":54},{"type":41,"content":667},[668,673,682],{"text":669,"type":45,"marks":670},"Car insurance can be a considerable expense, and you may be wondering how your credit score can impact your car insurance rate. On average, a driver with bad credit will ",[671],{"type":52,"attrs":672},{"color":54},{"text":674,"type":45,"marks":675},"pay 71% more",[676,679,681],{"type":66,"attrs":677},{"href":678,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.carinsurance.com/worst-states-for-drivers-with-bad-credit",{"type":52,"attrs":680},{"color":74},{"type":76},{"text":683,"type":45,"marks":684}," than a driver with good credit. That can come out to about $1,000 more annually. ",[685],{"type":52,"attrs":686},{"color":54},{"type":41,"content":688},[689],{"text":690,"type":45,"marks":691},"In addition to your credit history, several factors contribute to your rate, including your age, driving habits, and car type. ",[692],{"type":52,"attrs":693},{"color":54},{"type":104,"attrs":695,"content":696},{"level":106},[697],{"text":698,"type":45,"marks":699},"How Does Credit Score Affect Insurance Rates? ",[700,701],{"type":112},{"type":52,"attrs":702},{"color":54},{"type":41,"content":704},[705,714],{"text":706,"type":45,"marks":707},"90% of auto insurance companies",[708,711,713],{"type":66,"attrs":709},{"href":710,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://lawecommons.luc.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1169&context=lclr",{"type":52,"attrs":712},{"color":74},{"type":76},{"text":715,"type":45,"marks":716}," consider a driver’s credit history when determining insurance rates. Drivers with good credit are much more likely to receive a better insurance rate than drivers with poor credit. It can be the difference of hundreds of dollars a month. ",[717],{"type":52,"attrs":718},{"color":54},{"type":104,"attrs":720,"content":721},{"level":106},[722],{"text":723,"type":45,"marks":724},"How Is Your Credit Score Calculated? ",[725,726],{"type":112},{"type":52,"attrs":727},{"color":54},{"type":41,"content":729},[730],{"text":731,"type":45,"marks":732},"A number of factors determine your FICO credit score: ",[733],{"type":52,"attrs":734},{"color":54},{"type":421,"attrs":736,"content":737},{"order":424},[738,747,756,765,774],{"type":140,"content":739},[740],{"type":41,"content":741},[742],{"text":743,"type":45,"marks":744},"Payment history: 35%",[745],{"type":52,"attrs":746},{"color":54},{"type":140,"content":748},[749],{"type":41,"content":750},[751],{"text":752,"type":45,"marks":753},"Debt owed: 30%",[754],{"type":52,"attrs":755},{"color":54},{"type":140,"content":757},[758],{"type":41,"content":759},[760],{"text":761,"type":45,"marks":762},"Length of credit history: 15%",[763],{"type":52,"attrs":764},{"color":54},{"type":140,"content":766},[767],{"type":41,"content":768},[769],{"text":770,"type":45,"marks":771},"Types of credit used: 10%",[772],{"type":52,"attrs":773},{"color":54},{"type":140,"content":775},[776],{"type":41,"content":777},[778],{"text":779,"type":45,"marks":780},"New credit: 10%",[781],{"type":52,"attrs":782},{"color":54},{"type":41},{"type":41,"content":785},[786],{"text":787,"type":45,"marks":788},"Credit scores range from 300 to 850. A higher credit score indicates a better credit history. With a higher credit score, you can expect lower rates on credit and better chances of credit approval. ",[789],{"type":52,"attrs":790},{"color":54},{"type":41,"content":792},[793,798,807],{"text":794,"type":45,"marks":795},"You can ",[796],{"type":52,"attrs":797},{"color":54},{"text":799,"type":45,"marks":800},"check your credit report",[801,804,806],{"type":66,"attrs":802},{"href":803,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.annualcreditreport.com/index.action",{"type":52,"attrs":805},{"color":74},{"type":76},{"text":808,"type":45,"marks":809}," once a year from each of the three credit bureaus for free. ",[810],{"type":52,"attrs":811},{"color":54},{"type":104,"attrs":813,"content":814},{"level":106},[815],{"text":816,"type":45,"marks":817},"How To Improve Your Credit Score",[818,819],{"type":112},{"type":52,"attrs":820},{"color":54},{"type":41,"content":822},[823],{"text":824,"type":45,"marks":825},"Improving your credit score can make a major difference if you are looking for ways to reduce your auto insurance rate. Here are some ways to improve your credit score over time: ",[826],{"type":52,"attrs":827},{"color":54},{"type":421,"attrs":829,"content":830},{"order":424},[831,841,851,877,896],{"type":140,"content":832},[833],{"type":41,"content":834},[835],{"text":836,"type":45,"marks":837},"Make all credit payments on time",[838,839],{"type":112},{"type":52,"attrs":840},{"color":54},{"type":140,"content":842},[843],{"type":41,"content":844},[845],{"text":846,"type":45,"marks":847},"Pay off all late payments as soon as possible ",[848,849],{"type":112},{"type":52,"attrs":850},{"color":54},{"type":140,"content":852},[853],{"type":41,"content":854},[855,861,871],{"text":856,"type":45,"marks":857},"Lower your ",[858,859],{"type":112},{"type":52,"attrs":860},{"color":54},{"text":862,"type":45,"marks":863},"debt-to-income ratio",[864,867,868,870],{"type":66,"attrs":865},{"href":866,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/",{"type":112},{"type":52,"attrs":869},{"color":74},{"type":76},{"text":872,"type":45,"marks":873}," by paying off current debt",[874,875],{"type":112},{"type":52,"attrs":876},{"color":54},{"type":140,"content":878},[879],{"type":41,"content":880},[881,890],{"text":882,"type":45,"marks":883},"Check your credit report",[884,886,887,889],{"type":66,"attrs":885},{"href":803,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":112},{"type":52,"attrs":888},{"color":74},{"type":76},{"text":891,"type":45,"marks":892}," to ensure all credit information is accurate",[893,894],{"type":112},{"type":52,"attrs":895},{"color":54},{"type":140,"content":897},[898],{"type":41,"content":899},[900],{"text":901,"type":45,"marks":902},"Refrain from taking on additional debt",[903,904],{"type":112},{"type":52,"attrs":905},{"color":54},{"type":41},{"type":41,"content":908},[909],{"text":910,"type":45,"marks":911},"Improving your credit score can seem like a daunting and time-consuming task. However, it will be worth it in the long run. You can potentially lower your auto insurance rate and improve loan terms and rates across all credit types. ",[912],{"type":52,"attrs":913},{"color":54},{"type":104,"attrs":915,"content":916},{"level":106},[917],{"text":918,"type":45,"marks":919},"Credit Score vs. Credit-Based Insurance Score",[920,921],{"type":112},{"type":52,"attrs":922},{"color":54},{"type":41,"content":924},[925,930,939,944],{"text":926,"type":45,"marks":927},"In most states, car insurance companies will calculate a ",[928],{"type":52,"attrs":929},{"color":54},{"text":931,"type":45,"marks":932},"credit-based auto insurance score",[933,936,938],{"type":66,"attrs":934},{"href":935,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://disb.dc.gov/page/how-insurance-company-can-use-your-credit-score-determine-your-premium",{"type":52,"attrs":937},{"color":74},{"type":76},{"text":940,"type":45,"marks":941}," using your credit history. In states where it is a legal practice, ",[942],{"type":52,"attrs":943},{"color":54},{"text":945,"type":45,"marks":946},"your credit-based auto insurance score will be a factor used to determine your rates. ",[947,948],{"type":112},{"type":52,"attrs":949},{"color":54},{"type":41,"content":951},[952,957,966],{"text":953,"type":45,"marks":954},"A ",[955],{"type":52,"attrs":956},{"color":54},{"text":958,"type":45,"marks":959},"commonly cited Federal Trade Commission study",[960,963,965],{"type":66,"attrs":961},{"href":962,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.ftc.gov/sites/default/files/documents/reports/credit-based-insurance-scores-impacts-consumers-automobile-insurance-report-congress-federal-trade/p044804facta_report_credit-based_insurance_scores.pdf",{"type":52,"attrs":964},{"color":74},{"type":76},{"text":967,"type":45,"marks":968}," shows the correlation between credit and the likelihood that a driver will file for insurance claims. Since drivers with better credit are statistically less likely to file a claim, they will receive better auto insurance rates than drivers with lower credit scores. ",[969],{"type":52,"attrs":970},{"color":54},{"type":41,"content":972},[973],{"text":974,"type":45,"marks":975},"Your credit-based auto insurance score is calculated differently than your credit score. Here is how insurers calculate your credit-based auto insurance score: ",[976],{"type":52,"attrs":977},{"color":54},{"type":421,"attrs":979,"content":980},{"order":424},[981,990,998,1006,1014],{"type":140,"content":982},[983],{"type":41,"content":984},[985],{"text":986,"type":45,"marks":987},"Payment history: 40%",[988],{"type":52,"attrs":989},{"color":54},{"type":140,"content":991},[992],{"type":41,"content":993},[994],{"text":752,"type":45,"marks":995},[996],{"type":52,"attrs":997},{"color":54},{"type":140,"content":999},[1000],{"type":41,"content":1001},[1002],{"text":761,"type":45,"marks":1003},[1004],{"type":52,"attrs":1005},{"color":54},{"type":140,"content":1007},[1008],{"type":41,"content":1009},[1010],{"text":779,"type":45,"marks":1011},[1012],{"type":52,"attrs":1013},{"color":54},{"type":140,"content":1015},[1016],{"type":41,"content":1017},[1018],{"text":1019,"type":45,"marks":1020},"Types of credit used: 5%",[1021],{"type":52,"attrs":1022},{"color":54},{"type":41},{"type":41,"content":1025},[1026],{"text":1027,"type":45,"marks":1028},"There are states that prohibit the use of credit in determining car insurance rates. California, Michigan, Hawaii, and Massachusetts have made this practice illegal. However, in all other states, your credit-based auto insurance score and credit history can be used as a factor in determining your rate. ",[1029],{"type":52,"attrs":1030},{"color":54},{"type":104,"attrs":1032,"content":1033},{"level":106},[1034],{"text":1035,"type":45,"marks":1036},"How Getting A Car Insurance Quote Will Impact Your Credit Score",[1037,1038],{"type":112},{"type":52,"attrs":1039},{"color":54},{"type":41,"content":1041},[1042],{"text":1043,"type":45,"marks":1044},"Insurance quotes will not hurt your credit score. Insurers will check your credit during the process of determining your insurance quote, but it will be a soft pull.",[1045],{"type":52,"attrs":1046},{"color":54},{"type":41,"content":1048},[1049],{"text":1050,"type":45,"marks":1051},"A soft pull does not show up on your credit report or hurt your credit score. A hard pull, however, will hurt your credit score if you have many within a short period of time. The hard pull will impact your credit because you are actively applying for credit, whereas a soft pull is used for preapproved offers. ",[1052],{"type":52,"attrs":1053},{"color":54},{"type":41,"content":1055},[1056,1061,1070],{"text":1057,"type":45,"marks":1058},"Before getting a quote or applying for insurance, understand whether a ",[1059],{"type":52,"attrs":1060},{"color":54},{"text":1062,"type":45,"marks":1063},"soft or hard credit pull",[1064,1067,1069],{"type":66,"attrs":1065},{"href":1066,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.sba.gov/blog/credit-inquiries-what-you-should-know-about-hard-soft-pulls",{"type":52,"attrs":1068},{"color":74},{"type":76},{"text":1071,"type":45,"marks":1072}," is required. ",[1073],{"type":52,"attrs":1074},{"color":54},{"type":104,"attrs":1076,"content":1077},{"level":106},[1078],{"text":1079,"type":45,"marks":1080},"Other Factors That Determine Your Auto Insurance Rate",[1081,1082],{"type":112},{"type":52,"attrs":1083},{"color":54},{"type":41,"content":1085},[1086,1091,1100],{"text":1087,"type":45,"marks":1088},"Besides your credit-based auto insurance score, there are ",[1089],{"type":52,"attrs":1090},{"color":54},{"text":1092,"type":45,"marks":1093},"several other factors",[1094,1097,1099],{"type":66,"attrs":1095},{"href":1096,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.opic.texas.gov/news/car-insurance-rate/",{"type":52,"attrs":1098},{"color":74},{"type":76},{"text":1101,"type":45,"marks":1102}," that impact your insurance rate: ",[1103],{"type":52,"attrs":1104},{"color":54},{"type":137,"content":1106},[1107,1122,1137,1152,1167,1182],{"type":140,"content":1108},[1109],{"type":41,"content":1110},[1111,1117],{"text":1112,"type":45,"marks":1113},"Driving record: ",[1114,1115],{"type":112},{"type":52,"attrs":1116},{"color":54},{"text":1118,"type":45,"marks":1119},"Your driving history will greatly impact auto insurance rates. A clean record with no accidents or traffic violations will likely result in lower rates. ",[1120],{"type":52,"attrs":1121},{"color":54},{"type":140,"content":1123},[1124],{"type":41,"content":1125},[1126,1132],{"text":1127,"type":45,"marks":1128},"Demographics: ",[1129,1130],{"type":112},{"type":52,"attrs":1131},{"color":54},{"text":1133,"type":45,"marks":1134},"Age, gender, and marital status may impact your insurance rates. Younger and less experienced drivers will have higher insurance rates because they are considered to be a greater risk.",[1135],{"type":52,"attrs":1136},{"color":54},{"type":140,"content":1138},[1139],{"type":41,"content":1140},[1141,1147],{"text":1142,"type":45,"marks":1143},"Where you live: ",[1144,1145],{"type":112},{"type":52,"attrs":1146},{"color":54},{"text":1148,"type":45,"marks":1149},"Residing in a location with higher traffic or frequent accidents may raise your rates. ",[1150],{"type":52,"attrs":1151},{"color":54},{"type":140,"content":1153},[1154],{"type":41,"content":1155},[1156,1162],{"text":1157,"type":45,"marks":1158},"Vehicle type: ",[1159,1160],{"type":112},{"type":52,"attrs":1161},{"color":54},{"text":1163,"type":45,"marks":1164},"Make, model, year, and safety features of your car will be considered. More expensive vehicles may have higher insurance premiums. ",[1165],{"type":52,"attrs":1166},{"color":54},{"type":140,"content":1168},[1169],{"type":41,"content":1170},[1171,1177],{"text":1172,"type":45,"marks":1173},"Usage: ",[1174,1175],{"type":112},{"type":52,"attrs":1176},{"color":54},{"text":1178,"type":45,"marks":1179},"The purpose of your vehicle, whether for personal, commuting, or business reasons, can impact your rate. ",[1180],{"type":52,"attrs":1181},{"color":54},{"type":140,"content":1183},[1184],{"type":41,"content":1185},[1186,1192],{"text":1187,"type":45,"marks":1188},"Type of insurance, coverage options, and deductibles: ",[1189,1190],{"type":112},{"type":52,"attrs":1191},{"color":54},{"text":1193,"type":45,"marks":1194},"These factors are specific to the insurance plan. ",[1195],{"type":52,"attrs":1196},{"color":54},{"type":104,"attrs":1198,"content":1199},{"level":106},[1200],{"text":1201,"type":45,"marks":1202},"How To Get A Better Deal On Your Car Insurance",[1203,1204],{"type":112},{"type":52,"attrs":1205},{"color":54},{"type":41,"content":1207},[1208],{"text":1209,"type":45,"marks":1210},"If you are working on improving your credit score to get a more favorable insurance rate, there are some other steps you can take in the meantime: ",[1211],{"type":52,"attrs":1212},{"color":54},{"type":421,"attrs":1214,"content":1216},{"order":1215},{"order":424},[1217,1245,1260,1275,1290,1305],{"type":140,"content":1218},[1219],{"type":41,"content":1220},[1221,1227,1232,1240],{"text":1222,"type":45,"marks":1223},"Shop around for a better rate: ",[1224,1225],{"type":112},{"type":52,"attrs":1226},{"color":54},{"text":1228,"type":45,"marks":1229},"You may be able to find a better deal on your car insurance. ",[1230],{"type":52,"attrs":1231},{"color":54},{"text":1233,"type":45,"marks":1234},"Use Navient Marketplace",[1235,1237,1239],{"type":66,"attrs":1236},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1238},{"color":74},{"type":76},{"text":1241,"type":45,"marks":1242}," to compare offers from insurance companies. ",[1243],{"type":52,"attrs":1244},{"color":54},{"type":140,"content":1246},[1247],{"type":41,"content":1248},[1249,1255],{"text":1250,"type":45,"marks":1251},"Contact your insurance agent: ",[1252,1253],{"type":112},{"type":52,"attrs":1254},{"color":54},{"text":1256,"type":45,"marks":1257},"Speak with your agent to see if there is anything you can do to lower your current rate. ",[1258],{"type":52,"attrs":1259},{"color":54},{"type":140,"content":1261},[1262],{"type":41,"content":1263},[1264,1270],{"text":1265,"type":45,"marks":1266},"Practice responsible driving:",[1267,1268],{"type":112},{"type":52,"attrs":1269},{"color":54},{"text":1271,"type":45,"marks":1272}," A clean driving record makes a driver less likely to file an insurance claim. You may qualify for discounts for going a certain number of years without any accidents or traffic tickets. ",[1273],{"type":52,"attrs":1274},{"color":54},{"type":140,"content":1276},[1277],{"type":41,"content":1278},[1279,1285],{"text":1280,"type":45,"marks":1281},"Consider your car choice: ",[1282,1283],{"type":112},{"type":52,"attrs":1284},{"color":54},{"text":1286,"type":45,"marks":1287},"If you are in the market for a new car, the type of car you get will impact your insurance rate. Some vehicles are more expensive to repair or more prone to theft. Before choosing a new car, check with your insurance company to see how that may change your rate. ",[1288],{"type":52,"attrs":1289},{"color":54},{"type":140,"content":1291},[1292],{"type":41,"content":1293},[1294,1300],{"text":1295,"type":45,"marks":1296},"Get rid of unnecessary coverage:",[1297,1298],{"type":112},{"type":52,"attrs":1299},{"color":54},{"text":1301,"type":45,"marks":1302}," Examine your insurance pricing and policy to see if you can cut down on unnecessary coverage such as comprehensive and collision coverage on older cars. ",[1303],{"type":52,"attrs":1304},{"color":54},{"type":140,"content":1306},[1307],{"type":41,"content":1308},[1309,1315],{"text":1310,"type":45,"marks":1311},"Get a usage-based insurance (UBI) policy: ",[1312,1313],{"type":112},{"type":52,"attrs":1314},{"color":54},{"text":1316,"type":45,"marks":1317},"UBI plans more accurately assess your risk and can lower your monthly payments. If you are a responsible driver and can cut back on driving, this type of plan may benefit you. ",[1318],{"type":52,"attrs":1319},{"color":54},{"type":104,"attrs":1321,"content":1322},{"level":106},[1323],{"text":1324,"type":45,"marks":1325},"Compare Auto Insurance Offers",[1326,1327],{"type":112},{"type":52,"attrs":1328},{"color":54},{"type":41,"content":1330},[1331,1336,1344],{"text":1332,"type":45,"marks":1333},"Navient Marketplace makes it easy to see auto insurance offers from top insurers. ",[1334],{"type":52,"attrs":1335},{"color":54},{"text":1337,"type":45,"marks":1338},"Compare auto insurance offers",[1339,1341,1343],{"type":66,"attrs":1340},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1342},{"color":74},{"type":76},{"text":1345,"type":45,"marks":1346}," on Navient Marketplace today! ",[1347],{"type":52,"attrs":1348},{"color":54},{"type":41,"content":1350},[1351],{"text":607,"type":45,"marks":1352},[1353,1355],{"type":48,"attrs":1354},{"class":50},{"type":52,"attrs":1356},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798161\"}-->","https://www.marketplace.navient.com/blog/does-credit-score-affect-car-insurance/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798161\"}-->","does-credit-score-affect-car-insurance","navient_marketplace/blog/does-credit-score-affect-car-insurance",[],"db6c0fc2-18bf-4cc9-9d4e-298208cac91c","2023-09-26T16:17:12.664Z","blog/does-credit-score-affect-car-insurance/",[],{"name":1368,"created_at":1369,"published_at":1370,"updated_at":1371,"id":1372,"uuid":1373,"content":1374,"slug":1993,"full_slug":1994,"sort_by_date":69,"position":629,"tag_list":1995,"is_startpage":28,"parent_id":631,"meta_data":69,"group_id":1996,"first_published_at":1997,"release_id":69,"lang":634,"path":1998,"alternates":1999,"default_full_slug":69,"translated_slugs":69},"What Happens if I Default on a Loan?","2025-04-07T18:30:21.356Z","2025-12-26T13:44:59.448Z","2025-12-26T13:44:59.477Z",651798159,"be1f223d-4435-4db6-9e3e-6c704c0ad5b6",{"seo":1375,"_uid":20,"hero":1378,"author":30,"category":1383,"featured":28,"imageAlt":18,"component":32,"blogContents":1384,"canonicalTag":1991,"publishedDate":625,"_editable":1992},{"_uid":15,"title":1376,"plugin":17,"og_image":18,"og_title":18,"description":1377,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"What Happens if I Default on a Loan? | Navient Marketplace","Defaulting on a loan can have serious consequences. Learn how to avoid defaulting and what steps to take if it happens.",[1379],{"id":18,"_uid":23,"image":1380,"intro":1377,"classes":18,"_editable":1381,"blogTitle":1368,"component":26,"imageLink":1382,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/5184x3456/fefcc7e4b3/what-happens-if-i-default-on-a-loan.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798159\"}-->","/images/what-happens-if-i-default-on-a-loan.png","Finance 101",[1385],{"_uid":35,"color":36,"richText":1386,"_editable":1990,"component":623},{"type":38,"content":1387},[1388,1396,1403,1410,1418,1434,1441,1448,1455,1476,1484,1491,1500,1507,1527,1535,1542,1550,1571,1579,1609,1630,1638,1645,1653,1660,1747,1755,1762,1891,1899,1906,1933,1941,1956,1966,1981],{"type":41,"content":1389},[1390],{"text":44,"type":45,"marks":1391},[1392,1394],{"type":48,"attrs":1393},{"class":50},{"type":52,"attrs":1395},{"color":54},{"type":41,"content":1397},[1398],{"text":1399,"type":45,"marks":1400},"When you take out a loan, you intend to be able to pay it back. However, sometimes unexpected financial situations can make it challenging to make your payments. ",[1401],{"type":52,"attrs":1402},{"color":54},{"type":41,"content":1404},[1405],{"text":1406,"type":45,"marks":1407},"Defaulting on a loan happens when you miss your monthly payments for a specific amount of time. Once your loan is in default, you can experience consequences, including damage to your credit score, collection efforts, legal actions, and possibly losing assets secured by the loan. ",[1408],{"type":52,"attrs":1409},{"color":54},{"type":104,"attrs":1411,"content":1412},{"level":106},[1413],{"text":1414,"type":45,"marks":1415},"What Happens When I Start Missing Payments?",[1416],{"type":52,"attrs":1417},{"color":54},{"type":41,"content":1419},[1420,1429],{"text":1421,"type":45,"marks":1422},"Delinquency",[1423,1426,1428],{"type":66,"attrs":1424},{"href":1425,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.studentloanborrowerassistance.org/what-is-the-difference-between-default-and-delinquency/",{"type":52,"attrs":1427},{"color":74},{"type":76},{"text":1430,"type":45,"marks":1431}," is the first step towards defaulting on your loan. If you miss a single loan payment or make a late payment, you will be delinquent on your loan. ",[1432],{"type":52,"attrs":1433},{"color":54},{"type":41,"content":1435},[1436],{"text":1437,"type":45,"marks":1438},"At this stage, your loan payment is past due. Lenders typically have a grace period that allows late payments without severe consequences. However, you may experience late fees. ",[1439],{"type":52,"attrs":1440},{"color":54},{"type":41,"content":1442},[1443],{"text":1444,"type":45,"marks":1445},"Delinquency can lead to default, but it’s important to note that it is a temporary and reversible situation. You can recover from delinquency by making your missed payment(s) and getting back on track with your loan obligation. ",[1446],{"type":52,"attrs":1447},{"color":54},{"type":41,"content":1449},[1450],{"text":1451,"type":45,"marks":1452},"If you become delinquent on your loan or struggle to make payments, immediately contact your lender. Communicating and taking proactive steps can help stop delinquency from escalating into default. ",[1453],{"type":52,"attrs":1454},{"color":54},{"type":41,"content":1456},[1457,1462,1471],{"text":1458,"type":45,"marks":1459},"When you miss consecutive payments for a specific period of time as specified in your loan agreement, you ",[1460],{"type":52,"attrs":1461},{"color":54},{"text":1463,"type":45,"marks":1464},"default on your loans",[1465,1468,1470],{"type":66,"attrs":1466},{"href":1467,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/manage-loans/default",{"type":52,"attrs":1469},{"color":74},{"type":76},{"text":1472,"type":45,"marks":1473},". Default is the next step after delinquency and represents a more severe failure to make payments and pay back your loan. It can result in negative consequences, including legal action. ",[1474],{"type":52,"attrs":1475},{"color":54},{"type":104,"attrs":1477,"content":1478},{"level":106},[1479],{"text":1480,"type":45,"marks":1481},"What Does it Mean to Default on a Loan?",[1482],{"type":52,"attrs":1483},{"color":54},{"type":41,"content":1485},[1486],{"text":1487,"type":45,"marks":1488},"Defaulting on your loan will have different consequences and courses of action based on the type of loan. Different loan types have different time periods for default. Remember that the exact time period will differ depending on your lender and loan agreement.",[1489],{"type":52,"attrs":1490},{"color":54},{"type":104,"attrs":1492,"content":1493},{"level":244},[1494],{"text":1495,"type":45,"marks":1496},"Credit Cards ",[1497],{"type":52,"attrs":1498},{"color":1499},"rgb(67, 67, 67)",{"type":41,"content":1501},[1502],{"text":1503,"type":45,"marks":1504},"Credit cards will usually default after several months of delinquency. Exact timelines for default may vary, so check with your lender. Expected consequences include increased interest rates and penalty fees. ",[1505],{"type":52,"attrs":1506},{"color":54},{"type":41,"content":1508},[1509,1514,1523],{"text":1510,"type":45,"marks":1511},"If your credit card defaults, you could experience aggressive collection efforts from your lender or a debt collection agency. Your lender could also pursue legal action to recover the outstanding debt and possibly secure ",[1512],{"type":52,"attrs":1513},{"color":54},{"text":1515,"type":45,"marks":1516},"wage garnishment",[1517,1520,1522],{"type":66,"attrs":1518},{"href":1519,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.dol.gov/agencies/whd/fact-sheets/30-cppa",{"type":52,"attrs":1521},{"color":74},{"type":76},{"text":531,"type":45,"marks":1524},[1525],{"type":52,"attrs":1526},{"color":54},{"type":104,"attrs":1528,"content":1529},{"level":244},[1530],{"text":1531,"type":45,"marks":1532},"Personal Loans",[1533],{"type":52,"attrs":1534},{"color":1499},{"type":41,"content":1536},[1537],{"text":1538,"type":45,"marks":1539},"Personal loans will default at different times depending on your lender and loan agreement. Typically, it will be after several weeks or months, but check with your lender for the exact timeline.  Depending on the loan type, personal loans could result in wage garnishment or seizure of your collateral asset if you have a secured loan. ",[1540],{"type":52,"attrs":1541},{"color":54},{"type":104,"attrs":1543,"content":1544},{"level":244},[1545],{"text":1546,"type":45,"marks":1547},"Mortgage",[1548],{"type":52,"attrs":1549},{"color":1499},{"type":41,"content":1551},[1552,1557,1566],{"text":1553,"type":45,"marks":1554},"The time period for defaulting on a mortgage will ",[1555],{"type":52,"attrs":1556},{"color":54},{"text":1558,"type":45,"marks":1559},"vary by the lender and state",[1560,1563,1565],{"type":66,"attrs":1561},{"href":1562,"uuid":69,"anchor":69,"target":70,"linktype":71},"http://www.foreclosurelaw.org/",{"type":52,"attrs":1564},{"color":74},{"type":76},{"text":1567,"type":45,"marks":1568},". For many borrowers, defaulting on a mortgage will lead to foreclosure. If you struggle to make your mortgage payments, consider refinancing your mortgage. ",[1569],{"type":52,"attrs":1570},{"color":54},{"type":104,"attrs":1572,"content":1573},{"level":244},[1574],{"text":1575,"type":45,"marks":1576},"Student Loans",[1577],{"type":52,"attrs":1578},{"color":1499},{"type":41,"content":1580},[1581,1590,1595,1604],{"text":1582,"type":45,"marks":1583},"Student loans",[1584,1587,1589],{"type":66,"attrs":1585},{"href":1586,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://navirefi.com/",{"type":52,"attrs":1588},{"color":74},{"type":76},{"text":1591,"type":45,"marks":1592}," will typically default after ",[1593],{"type":52,"attrs":1594},{"color":54},{"text":1596,"type":45,"marks":1597},"270 days",[1598,1600,1601,1603],{"type":66,"attrs":1599},{"href":1467,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":112},{"type":52,"attrs":1602},{"color":74},{"type":76},{"text":1605,"type":45,"marks":1606},". This type of loan has a long delinquency period, allowing you more time to sort out your financial situation. ",[1607],{"type":52,"attrs":1608},{"color":54},{"type":41,"content":1610},[1611,1616,1625],{"text":1612,"type":45,"marks":1613},"The first consequence of student loan default can be ",[1614],{"type":52,"attrs":1615},{"color":54},{"text":1617,"type":45,"marks":1618},"acceleration",[1619,1622,1624],{"type":66,"attrs":1620},{"href":1621,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/help-center/answers/article/what-is-acceleration",{"type":52,"attrs":1623},{"color":74},{"type":76},{"text":1626,"type":45,"marks":1627},", meaning your outstanding balance is due immediately. The federal government can also withhold federal benefits and tax refunds until you repay your debt. Defaulting on student loans can also result in wage garnishment. ",[1628],{"type":52,"attrs":1629},{"color":54},{"type":104,"attrs":1631,"content":1632},{"level":244},[1633],{"text":1634,"type":45,"marks":1635},"Auto Loans",[1636],{"type":52,"attrs":1637},{"color":1499},{"type":41,"content":1639},[1640],{"text":1641,"type":45,"marks":1642},"Auto loans will typically default after several weeks or months. For an exact timeline, check with your lender. If you default on your auto loan, your lender may repossess your vehicle. If your car is repossessed, you may still owe your lender due to your vehicle depreciating. ",[1643],{"type":52,"attrs":1644},{"color":54},{"type":104,"attrs":1646,"content":1647},{"level":244},[1648],{"text":1649,"type":45,"marks":1650},"Consequences",[1651],{"type":52,"attrs":1652},{"color":1499},{"type":41,"content":1654},[1655],{"text":1656,"type":45,"marks":1657},"Regardless of the type of loan you are defaulting on, certain consequences may apply in every situation: ",[1658],{"type":52,"attrs":1659},{"color":54},{"type":137,"content":1661},[1662,1677,1692,1717,1732],{"type":140,"content":1663},[1664],{"type":41,"content":1665},[1666,1672],{"text":1667,"type":45,"marks":1668},"Damage to your credit score:",[1669,1670],{"type":112},{"type":52,"attrs":1671},{"color":54},{"text":1673,"type":45,"marks":1674}," default will be reported to the credit bureaus, causing your credit score to fall. A low credit score may make qualifying for future credit and favorable terms difficult. ",[1675],{"type":52,"attrs":1676},{"color":54},{"type":140,"content":1678},[1679],{"type":41,"content":1680},[1681,1687],{"text":1682,"type":45,"marks":1683},"Increased interest rates and fees: ",[1684,1685],{"type":112},{"type":52,"attrs":1686},{"color":54},{"text":1688,"type":45,"marks":1689},"late fees will add to your debt balance, and you could experience increased interest rates when you default. Increased rates and added fees will make it even harder to pay off. ",[1690],{"type":52,"attrs":1691},{"color":54},{"type":140,"content":1693},[1694],{"type":41,"content":1695},[1696,1702,1712],{"text":1697,"type":45,"marks":1698},"A default will stay on your credit report for ",[1699,1700],{"type":112},{"type":52,"attrs":1701},{"color":54},{"text":1703,"type":45,"marks":1704},"seven years",[1705,1708,1709,1711],{"type":66,"attrs":1706},{"href":1707,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/how-long-does-negative-information-remain-on-my-credit-report-en-323/",{"type":112},{"type":52,"attrs":1710},{"color":74},{"type":76},{"text":1713,"type":45,"marks":1714},": your credit score can improve over time, but the default will stay on your report for seven years.",[1715],{"type":52,"attrs":1716},{"color":54},{"type":140,"content":1718},[1719],{"type":41,"content":1720},[1721,1727],{"text":1722,"type":45,"marks":1723},"You may have to work with a collection agency: ",[1724,1725],{"type":112},{"type":52,"attrs":1726},{"color":54},{"text":1728,"type":45,"marks":1729},"lenders may involve collection agencies to recover the outstanding debt. They may frequently contact you until you pay off your debt. ",[1730],{"type":52,"attrs":1731},{"color":54},{"type":140,"content":1733},[1734],{"type":41,"content":1735},[1736,1742],{"text":1737,"type":45,"marks":1738},"Potential legal action: ",[1739,1740],{"type":112},{"type":52,"attrs":1741},{"color":54},{"text":1743,"type":45,"marks":1744},"legal action can result in wage garnishment or seizure of your collateral asset, depending on loan type. ",[1745],{"type":52,"attrs":1746},{"color":54},{"type":104,"attrs":1748,"content":1749},{"level":106},[1750],{"text":1751,"type":45,"marks":1752},"How to Avoid Going Into Default",[1753],{"type":52,"attrs":1754},{"color":54},{"type":41,"content":1756},[1757],{"text":1758,"type":45,"marks":1759},"If your loan is not already in default, you can take steps to avoid it. Since default has some significant consequences, try your best to prevent it. Here are some options that may work for you based on your financial situation and loan type: ",[1760],{"type":52,"attrs":1761},{"color":54},{"type":421,"attrs":1763,"content":1764},{"order":424},[1765,1781,1825,1876],{"type":140,"content":1766},[1767,1780],{"type":41,"content":1768},[1769,1775],{"text":1770,"type":45,"marks":1771},"Deferment or Forbearance: ",[1772,1773],{"type":112},{"type":52,"attrs":1774},{"color":54},{"text":1776,"type":45,"marks":1777},"One option to avoid default is seeking deferment or forbearance. Both are ways to provide temporary relief from your payments and require specific eligibility criteria and approval from your lender. Contact your lender to learn if this may be an option for you. ",[1778],{"type":52,"attrs":1779},{"color":54},{"type":41},{"type":140,"content":1782},[1783,1824],{"type":41,"content":1784},[1785,1791,1796,1805,1810,1819],{"text":1786,"type":45,"marks":1787},"Repayment Plans (For Federal Student Loans): ",[1788,1789],{"type":112},{"type":52,"attrs":1790},{"color":54},{"text":1792,"type":45,"marks":1793},"Changing your ",[1794],{"type":52,"attrs":1795},{"color":54},{"text":1797,"type":45,"marks":1798},"payment plan",[1799,1802,1804],{"type":66,"attrs":1800},{"href":1801,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/manage-loans/repayment/plans",{"type":52,"attrs":1803},{"color":74},{"type":76},{"text":1806,"type":45,"marks":1807}," may be a viable option for federal student loans to make your payments more manageable. ",[1808],{"type":52,"attrs":1809},{"color":54},{"text":1811,"type":45,"marks":1812},"Income-driven repayment plans",[1813,1816,1818],{"type":66,"attrs":1814},{"href":1815,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/manage-loans/repayment/plans/income-driven",{"type":52,"attrs":1817},{"color":74},{"type":76},{"text":1820,"type":45,"marks":1821}," base your monthly payments on your income and family size. An income-driven repayment plan may be a good option if your current payments are not affordable for your income. ",[1822],{"type":52,"attrs":1823},{"color":54},{"type":41},{"type":140,"content":1826},[1827,1875],{"type":41,"content":1828},[1829,1835,1840,1848,1856,1861,1870],{"text":1830,"type":45,"marks":1831},"Refinance or Consolidate (For Student Loans): ",[1832,1833],{"type":112},{"type":52,"attrs":1834},{"color":54},{"text":1836,"type":45,"marks":1837},"For private student loans, ",[1838],{"type":52,"attrs":1839},{"color":54},{"text":1841,"type":45,"marks":1842},"refinancing",[1843,1845,1847],{"type":66,"attrs":1844},{"href":1586,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1846},{"color":74},{"type":76},{"text":1849,"type":45,"marks":1850},"1",[1851,1854],{"type":48,"attrs":1852},{"class":1853},"superscript",{"type":52,"attrs":1855},{"color":54},{"text":1857,"type":45,"marks":1858}," can lower your monthly payments. For federal student loans, consider ",[1859],{"type":52,"attrs":1860},{"color":54},{"text":1862,"type":45,"marks":1863},"consolidating",[1864,1867,1869],{"type":66,"attrs":1865},{"href":1866,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://studentaid.gov/manage-loans/consolidation",{"type":52,"attrs":1868},{"color":74},{"type":76},{"text":1871,"type":45,"marks":1872},". Although this may result in paying more in interest over the life of your loan, it may help make your monthly payments more manageable. ",[1873],{"type":52,"attrs":1874},{"color":54},{"type":41},{"type":140,"content":1877},[1878],{"type":41,"content":1879},[1880,1886],{"text":1881,"type":45,"marks":1882},"Contact Your Lender: ",[1883,1884],{"type":112},{"type":52,"attrs":1885},{"color":54},{"text":1887,"type":45,"marks":1888},"Options to avoid default will vary depending on your lender and loan type. If you struggle to make payments, do not hesitate to contact your lender. Explain your financial situation and work with your lender to come up with a solution. ",[1889],{"type":52,"attrs":1890},{"color":54},{"type":104,"attrs":1892,"content":1893},{"level":106},[1894],{"text":1895,"type":45,"marks":1896},"What To Do if You’re in Default",[1897],{"type":52,"attrs":1898},{"color":54},{"type":41,"content":1900},[1901],{"text":1902,"type":45,"marks":1903},"If you’re in default, contact your lender as soon as possible. Do not avoid communications from your lender or collection agencies. ",[1904],{"type":52,"attrs":1905},{"color":54},{"type":41,"content":1907},[1908,1913,1921,1928],{"text":1909,"type":45,"marks":1910},"There are options out there if you’re struggling to make payments. ",[1911],{"type":52,"attrs":1912},{"color":54},{"text":1914,"type":45,"marks":1915},"Apply for a debt consolidation loan",[1916,1918,1920],{"type":66,"attrs":1917},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1919},{"color":74},{"type":76},{"text":1922,"type":45,"marks":1923},"2",[1924,1926],{"type":48,"attrs":1925},{"class":1853},{"type":52,"attrs":1927},{"color":54},{"text":1929,"type":45,"marks":1930}," or balance transfer credit card today. ",[1931],{"type":52,"attrs":1932},{"color":54},{"type":41,"content":1934},[1935],{"text":607,"type":45,"marks":1936},[1937,1939],{"type":48,"attrs":1938},{"class":50},{"type":52,"attrs":1940},{"color":54},{"type":41,"content":1942},[1943,1949],{"text":1849,"type":45,"marks":1944},[1945,1947],{"type":48,"attrs":1946},{"class":1853},{"type":52,"attrs":1948},{"color":54},{"text":1950,"type":45,"marks":1951}," You may lose benefits associated with your underlying federal and/or private loans if you refinance such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options. If you file for bankruptcy, you may still be required to pay back this loan.",[1952,1954],{"type":48,"attrs":1953},{"class":50},{"type":52,"attrs":1955},{"color":54},{"type":41,"content":1957},[1958],{"text":1959,"type":45,"marks":1960},"Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for total cost of your refinanced loan.",[1961,1963],{"type":48,"attrs":1962},{"class":50},{"type":52,"attrs":1964},{"color":1965},"rgb(75, 75, 75)",{"type":41,"content":1967},[1968,1974],{"text":1922,"type":45,"marks":1969},[1970,1972],{"type":48,"attrs":1971},{"class":1853},{"type":52,"attrs":1973},{"color":1965},{"text":1975,"type":45,"marks":1976}," Navient customers are invited to consider personal loan offers through our partner MoneyLion. Navient has not shared your information with MoneyLion and is not involved in the personal loan application process in any manner. All information is submitted directly to MoneyLion and any personal loan offers are made directly by participants in MoneyLion’s lending platform. Engine by MoneyLion is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE:ML). Checking your rate will not affect your credit score. Eligibility is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. ",[1977,1979],{"type":48,"attrs":1978},{"class":50},{"type":52,"attrs":1980},{"color":1965},{"type":41,"content":1982},[1983],{"text":1984,"type":45,"marks":1985},"Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans.",[1986,1988],{"type":48,"attrs":1987},{"class":50},{"type":52,"attrs":1989},{"color":1965},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798159\"}-->","https://www.marketplace.navient.com/blog/what-happens-if-i-default-on-a-loan/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798159\"}-->","what-happens-if-i-default-on-a-loan","navient_marketplace/blog/what-happens-if-i-default-on-a-loan",[],"12cbfbb6-ff53-41b2-a115-28376f0c7d55","2023-09-26T16:17:34.857Z","blog/what-happens-if-i-default-on-a-loan",[],{"name":2001,"created_at":2002,"published_at":2003,"updated_at":2004,"id":2005,"uuid":2006,"content":2007,"slug":2795,"full_slug":2796,"sort_by_date":69,"position":629,"tag_list":2797,"is_startpage":28,"parent_id":631,"meta_data":69,"group_id":2798,"first_published_at":2799,"release_id":69,"lang":634,"path":2800,"alternates":2801,"default_full_slug":69,"translated_slugs":69},"Which debt should I pay off first?","2025-04-07T18:30:19.642Z","2026-04-01T16:45:08.862Z","2026-04-01T16:45:08.886Z",651798158,"a89244e6-c8ca-49cd-ad15-5b25234ef178",{"seo":2008,"_uid":20,"hero":2011,"author":30,"category":1383,"featured":28,"imageAlt":18,"component":32,"blogContents":2017,"canonicalTag":2793,"publishedDate":625,"_editable":2794},{"_uid":15,"title":2009,"plugin":17,"og_image":18,"og_title":18,"description":2010,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Which debt should I pay off first? | Navient Marketplace","Pay off higher-interest debt first to save the most money over time. But if that sounds like too big of a challenge, try these other methods.",[2012],{"id":18,"_uid":23,"image":2013,"intro":2010,"classes":18,"_editable":2014,"blogTitle":2015,"component":26,"imageLink":2016,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/1280x853/6fb22bafe2/which-debt-should-i-pay-off-first.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798158\"}-->","Which Debt Should I Pay Off First?","/images/which-debt-should-i-pay-off-first.png",[2018],{"_uid":35,"color":36,"richText":2019,"_editable":2792,"component":623},{"type":38,"content":2020},[2021,2030,2040,2063,2083,2092,2114,2122,2131,2153,2161,2170,2179,2188,2197,2214,2244,2252,2260,2268,2277,2286,2295,2304,2325,2333,2341,2484,2492,2501,2510,2519,2528,2550,2558,2566,2728,2737,2758,2767,2783],{"type":41,"attrs":2022,"content":2023},{"textAlign":69},[2024],{"text":44,"type":45,"marks":2025},[2026,2028],{"type":52,"attrs":2027},{"color":54},{"type":48,"attrs":2029},{"class":50},{"type":41,"attrs":2031,"content":2032},{"textAlign":69},[2033],{"text":2034,"type":45,"marks":2035},"Navient is not a debt consulting company. This is for personal finance education only. If you have questions about how to pay off your debt, please consult with a professional debt management company. ",[2036,2038],{"type":52,"attrs":2037},{"color":54},{"type":48,"attrs":2039},{"class":50},{"type":41,"attrs":2041,"content":2042},{"textAlign":69},[2043,2048,2057],{"text":2044,"type":45,"marks":2045},"If you have multiple sources of debt, it can take time to figure out which debt you should pay off first. Remember that you are not alone in your debt management efforts. In 2022, ",[2046],{"type":52,"attrs":2047},{"color":54},{"text":2049,"type":45,"marks":2050},"the average debt for Americans was $95,067",[2051,2054,2056],{"type":66,"attrs":2052},{"href":2053,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/",{"type":52,"attrs":2055},{"color":74},{"type":76},{"text":2058,"type":45,"marks":2059}," across all debt types. ",[2060],{"type":52,"attrs":2061},{"color":2062},"rgb(51, 51, 51)",{"type":41,"attrs":2064,"content":2065},{"textAlign":69},[2066,2071,2078],{"text":2067,"type":45,"marks":2068},"Whether you have debt from a mortgage, student loans, credit cards, or other debt types, there are methods to paying off your debt that can make it easier. The best plan for you is the one you can stick with. However, the first step for ",[2069],{"type":52,"attrs":2070},{"color":54},{"text":2072,"type":45,"marks":2073},"everyone",[2074,2076],{"type":52,"attrs":2075},{"color":54},{"type":2077},"italic",{"text":2079,"type":45,"marks":2080}," is paying off any tax debt or delinquent accounts before trying out these strategies. ",[2081],{"type":52,"attrs":2082},{"color":54},{"type":104,"attrs":2084,"content":2085},{"level":106,"textAlign":69},[2086],{"text":2087,"type":45,"marks":2088},"Pay Off Tax Debt First",[2089,2091],{"type":52,"attrs":2090},{"color":54},{"type":112},{"type":41,"attrs":2093,"content":2094},{"textAlign":69},[2095,2100,2109],{"text":2096,"type":45,"marks":2097},"If you owe any tax debt, you need to pay this debt off first. Tax debt is the result of not paying the tax balance of your federal income taxes by the due date, typically April 15. Going too long without paying could result in ",[2098],{"type":52,"attrs":2099},{"color":54},{"text":2101,"type":45,"marks":2102},"high interest, penalties, and fees",[2103,2106,2108],{"type":66,"attrs":2104},{"href":2105,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.irs.gov/newsroom/if-youve-filed-but-havent-paid#:~:text=The%20failure%2Dto%2Dpay%20penalty,the%20total%20amount%20you%20owe.",{"type":52,"attrs":2107},{"color":74},{"type":76},{"text":2110,"type":45,"marks":2111},". Leaving this debt unpaid will be extremely difficult to get out from under. ",[2112],{"type":52,"attrs":2113},{"color":54},{"type":41,"attrs":2115,"content":2116},{"textAlign":69},[2117],{"text":2118,"type":45,"marks":2119},"Once you pay off your tax debt, you can start paying off your remaining debt. ",[2120],{"type":52,"attrs":2121},{"color":54},{"type":104,"attrs":2123,"content":2124},{"level":106,"textAlign":69},[2125],{"text":2126,"type":45,"marks":2127},"Pay Delinquent Accounts First",[2128,2130],{"type":52,"attrs":2129},{"color":54},{"type":112},{"type":41,"attrs":2132,"content":2133},{"textAlign":69},[2134,2139,2148],{"text":2135,"type":45,"marks":2136},"Another essential step before paying off your remaining debt is to take care of any ",[2137],{"type":52,"attrs":2138},{"color":54},{"text":2140,"type":45,"marks":2141},"delinquent accounts",[2142,2145,2147],{"type":66,"attrs":2143},{"href":2144,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.investopedia.com/terms/d/delinquent.asp#:~:text=In%20finance%2C%20it%20commonly%20refers,generally%20considered%20to%20be%20delinquent.",{"type":52,"attrs":2146},{"color":74},{"type":76},{"text":2149,"type":45,"marks":2150},". Delinquent accounts are payments or debts that are past due. Having delinquent accounts can have consequences, including late fees and damage to your credit score. It can also make it difficult to secure future credit, such as a mortgage or auto loan. ",[2151],{"type":52,"attrs":2152},{"color":54},{"type":41,"attrs":2154,"content":2155},{"textAlign":69},[2156],{"text":2157,"type":45,"marks":2158},"Once you’ve handled any delinquent accounts, it’s time to start paying off any remaining debt. ",[2159],{"type":52,"attrs":2160},{"color":54},{"type":104,"attrs":2162,"content":2163},{"level":106,"textAlign":69},[2164],{"text":2165,"type":45,"marks":2166},"Pay Off Highest-Interest Debt First (Avalanche Method)",[2167,2169],{"type":52,"attrs":2168},{"color":54},{"type":112},{"type":41,"attrs":2171,"content":2172},{"textAlign":69},[2173],{"text":2174,"type":45,"marks":2175},"Best for: individuals who can stay motivated",[2176,2178],{"type":52,"attrs":2177},{"color":54},{"type":2077},{"type":41,"attrs":2180,"content":2181},{"textAlign":69},[2182],{"text":2183,"type":45,"marks":2184},"Pros: save money on interest ",[2185,2187],{"type":52,"attrs":2186},{"color":54},{"type":2077},{"type":41,"attrs":2189,"content":2190},{"textAlign":69},[2191],{"text":2192,"type":45,"marks":2193},"Cons: can take a while to feel like you are making progress",[2194,2196],{"type":52,"attrs":2195},{"color":54},{"type":2077},{"type":41,"attrs":2198,"content":2199},{"textAlign":69},[2200,2209],{"text":2201,"type":45,"marks":2202},"The debt avalanche method",[2203,2206,2208],{"type":66,"attrs":2204},{"href":2205,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/about-us/blog/how-reduce-your-debt/",{"type":52,"attrs":2207},{"color":74},{"type":76},{"text":2210,"type":45,"marks":2211}," is the most commonly recommended option for paying off debt. Using this method, you’ll save the most on interest by paying off debts with high-interest rates. ",[2212],{"type":52,"attrs":2213},{"color":54},{"type":41,"attrs":2215,"content":2216},{"textAlign":69},[2217,2222,2228,2238],{"text":2218,"type":45,"marks":2219},"This method focuses on paying off the debt with the highest interest rate first. To follow the avalanche method, make your minimum monthly payments on all accounts, but dedicate any extra money to the highest-interest debt. ",[2220],{"type":52,"attrs":2221},{"color":54},{"text":2223,"type":45,"marks":2224},"As a general tip, when you have additional funds to pay ahead, ",[2225,2227],{"type":52,"attrs":2226},{"color":54},{"type":112},{"text":2229,"type":45,"marks":2230},"pay toward the principal",[2231,2234,2236,2237],{"type":66,"attrs":2232},{"href":2233,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-paying-interest-and-paying-off-my-principal-in-an-auto-loan-en-845/",{"type":52,"attrs":2235},{"color":74},{"type":112},{"type":76},{"text":2239,"type":45,"marks":2240}," instead of the loan balance. ",[2241,2243],{"type":52,"attrs":2242},{"color":54},{"type":112},{"type":41,"attrs":2245,"content":2246},{"textAlign":69},[2247],{"text":2248,"type":45,"marks":2249},"Once you pay off your highest-interest debt, prioritize paying off the debt with the next highest-interest rate. Continue this process until you are debt free. Like an avalanche, this method starts slowly and then gains momentum. You’ll have more funds for the remaining debts as you pay off the highest-interest debts. Saving money on interest will help you make larger payments on your remaining debt and reduce the total interest you will pay. ",[2250],{"type":52,"attrs":2251},{"color":54},{"type":41,"attrs":2253,"content":2254},{"textAlign":69},[2255],{"text":2256,"type":45,"marks":2257},"The avalanche method may be suitable if you can stick to making regular payments for years or even decades. It may also work for you if your highest-interest debts are of a relatively low balance. Low balances will make it easier for you to gain momentum using this method. ",[2258],{"type":52,"attrs":2259},{"color":54},{"type":41,"attrs":2261,"content":2262},{"textAlign":69},[2263],{"text":2264,"type":45,"marks":2265},"While there are benefits to this method, it can be demotivating to get started since the highest-interest debt will also be the most challenging to pay off. It may not work for you if your highest-interest debt also has a high balance. ",[2266],{"type":52,"attrs":2267},{"color":54},{"type":104,"attrs":2269,"content":2270},{"level":106,"textAlign":69},[2271],{"text":2272,"type":45,"marks":2273},"Pay Off Smallest Balance Debt First (Snowball Method)",[2274,2276],{"type":52,"attrs":2275},{"color":54},{"type":112},{"type":41,"attrs":2278,"content":2279},{"textAlign":69},[2280],{"text":2281,"type":45,"marks":2282},"Best for: individuals who want to see progress quickly",[2283,2285],{"type":52,"attrs":2284},{"color":54},{"type":2077},{"type":41,"attrs":2287,"content":2288},{"textAlign":69},[2289],{"text":2290,"type":45,"marks":2291},"Pros: easy to make progress",[2292,2294],{"type":52,"attrs":2293},{"color":54},{"type":2077},{"type":41,"attrs":2296,"content":2297},{"textAlign":69},[2298],{"text":2299,"type":45,"marks":2300},"Cons: will likely cost more than the avalanche method overall",[2301,2303],{"type":52,"attrs":2302},{"color":54},{"type":2077},{"type":41,"attrs":2305,"content":2306},{"textAlign":69},[2307,2312,2320],{"text":2308,"type":45,"marks":2309},"Another method to pay off your debt is ",[2310],{"type":52,"attrs":2311},{"color":54},{"text":2313,"type":45,"marks":2314},"the snowball method",[2315,2317,2319],{"type":66,"attrs":2316},{"href":2205,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":2318},{"color":74},{"type":76},{"text":2321,"type":45,"marks":2322},". This method pays off your lowest balances first, regardless of interest rates. ",[2323],{"type":52,"attrs":2324},{"color":54},{"type":41,"attrs":2326,"content":2327},{"textAlign":69},[2328],{"text":2329,"type":45,"marks":2330},"This method may be excellent for you if you need help staying motivated or want to feel like you are making progress on your debt quickly. You will likely be able to pay off your first debt in a matter of months or a year. The snowball method keeps your momentum, motivating you to pay down your remaining debt balances. ",[2331],{"type":52,"attrs":2332},{"color":54},{"type":41,"attrs":2334,"content":2335},{"textAlign":69},[2336],{"text":2337,"type":45,"marks":2338},"Follow the snowball method with these easy steps: ",[2339],{"type":52,"attrs":2340},{"color":54},{"type":421,"attrs":2342,"content":2344},{"order":2343},{"order":424},[2345,2393,2409,2425,2452,2468],{"type":140,"content":2346},[2347,2361],{"type":41,"attrs":2348,"content":2349},{"textAlign":69},[2350,2356],{"text":2351,"type":45,"marks":2352},"Make a list of all your debt balances",[2353,2355],{"type":52,"attrs":2354},{"color":54},{"type":112},{"text":2357,"type":45,"marks":2358}," to identify the smallest. For example, let’s consider the following debts: ",[2359],{"type":52,"attrs":2360},{"color":54},{"type":137,"content":2362},[2363,2373,2383],{"type":140,"content":2364},[2365],{"type":41,"attrs":2366,"content":2367},{"textAlign":69},[2368],{"text":2369,"type":45,"marks":2370},"Credit Card A: $1,000 balance",[2371],{"type":52,"attrs":2372},{"color":54},{"type":140,"content":2374},[2375],{"type":41,"attrs":2376,"content":2377},{"textAlign":69},[2378],{"text":2379,"type":45,"marks":2380},"Credit Card B: $7,500 balance",[2381],{"type":52,"attrs":2382},{"color":54},{"type":140,"content":2384},[2385],{"type":41,"attrs":2386,"content":2387},{"textAlign":69},[2388],{"text":2389,"type":45,"marks":2390},"Personal Loan: $15,000 balance",[2391],{"type":52,"attrs":2392},{"color":54},{"type":140,"content":2394},[2395],{"type":41,"attrs":2396,"content":2397},{"textAlign":69},[2398,2404],{"text":2399,"type":45,"marks":2400},"Pay the minimum payments on all debts except for your smallest balance.",[2401,2403],{"type":52,"attrs":2402},{"color":54},{"type":112},{"text":2405,"type":45,"marks":2406}," For this example, you would make the minimum payments on Credit Card B and your Personal Loan. ",[2407],{"type":52,"attrs":2408},{"color":54},{"type":140,"content":2410},[2411],{"type":41,"attrs":2412,"content":2413},{"textAlign":69},[2414,2420],{"text":2415,"type":45,"marks":2416},"Put any extra money toward your smallest debt balance. ",[2417,2419],{"type":52,"attrs":2418},{"color":54},{"type":112},{"text":2421,"type":45,"marks":2422},"In this example, any extra money would go towards paying off Credit Card A. ",[2423],{"type":52,"attrs":2424},{"color":54},{"type":140,"content":2426},[2427],{"type":41,"attrs":2428,"content":2429},{"textAlign":69},[2430,2436,2441,2447],{"text":2431,"type":45,"marks":2432},"Snowball effect: ",[2433,2435],{"type":52,"attrs":2434},{"color":54},{"type":112},{"text":2437,"type":45,"marks":2438},"once you pay off your smallest balance, move on to the next smallest.",[2439],{"type":52,"attrs":2440},{"color":54},{"text":2442,"type":45,"marks":2443}," ",[2444,2446],{"type":52,"attrs":2445},{"color":54},{"type":112},{"text":2448,"type":45,"marks":2449},"Using the example, once you pay off Credit Card A, make extra payments toward Credit Card B. ",[2450],{"type":52,"attrs":2451},{"color":54},{"type":140,"content":2453},[2454],{"type":41,"attrs":2455,"content":2456},{"textAlign":69},[2457,2463],{"text":2458,"type":45,"marks":2459},"Repeat as necessary. ",[2460,2462],{"type":52,"attrs":2461},{"color":54},{"type":112},{"text":2464,"type":45,"marks":2465},"Continue making extra payments on your next smallest balance until you are debt-free. ",[2466],{"type":52,"attrs":2467},{"color":54},{"type":140,"content":2469},[2470],{"type":41,"attrs":2471,"content":2472},{"textAlign":69},[2473,2479],{"text":2474,"type":45,"marks":2475},"Debt-free: ",[2476,2478],{"type":52,"attrs":2477},{"color":54},{"type":112},{"text":2480,"type":45,"marks":2481},"celebrate reaching your financial goals! ",[2482],{"type":52,"attrs":2483},{"color":54},{"type":41,"attrs":2485,"content":2486},{"textAlign":69},[2487],{"text":2488,"type":45,"marks":2489},"Compared to the avalanche method, this method will cost more overall and take longer. You will also accrue more interest. However, it may be worth it, as paying off your debt will feel more achievable. ",[2490],{"type":52,"attrs":2491},{"color":54},{"type":104,"attrs":2493,"content":2494},{"level":106,"textAlign":69},[2495],{"text":2496,"type":45,"marks":2497},"Consolidate Your Debt",[2498,2500],{"type":52,"attrs":2499},{"color":54},{"type":112},{"type":41,"attrs":2502,"content":2503},{"textAlign":69},[2504],{"text":2505,"type":45,"marks":2506},"Best for: individuals who have multiple high-interest debts",[2507,2509],{"type":52,"attrs":2508},{"color":54},{"type":2077},{"type":41,"attrs":2511,"content":2512},{"textAlign":69},[2513],{"text":2514,"type":45,"marks":2515},"Pros: simplifies payment",[2516,2518],{"type":52,"attrs":2517},{"color":54},{"type":2077},{"type":41,"attrs":2520,"content":2521},{"textAlign":69},[2522],{"text":2523,"type":45,"marks":2524},"Cons: may extend your repayment period; may accumulate more debt ",[2525,2527],{"type":52,"attrs":2526},{"color":54},{"type":2077},{"type":41,"attrs":2529,"content":2530},{"textAlign":69},[2531,2536,2545],{"text":2532,"type":45,"marks":2533},"Consider ",[2534],{"type":52,"attrs":2535},{"color":54},{"text":2537,"type":45,"marks":2538},"consolidating your debt ",[2539,2542,2544],{"type":66,"attrs":2540},{"href":2541,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://offers.moneylion.com/channelTrackingOfferRedirect/ba675b58-5d95-47ac-b285-7ddd8df4eaf3/f8b6569c-b09c-41c4-818f-6ac8ffa83f8e",{"type":52,"attrs":2543},{"color":74},{"type":76},{"text":2546,"type":45,"marks":2547},"to simplify your payments and potentially lower your interest rates. However, you should only consolidate if you are sure you can continue making payments. ",[2548],{"type":52,"attrs":2549},{"color":54},{"type":41,"attrs":2551,"content":2552},{"textAlign":69},[2553],{"text":2554,"type":45,"marks":2555},"Taking a break from payments can be tempting once your balance is transferred, but you should continue making payments. Delaying will only keep you in debt longer. ",[2556],{"type":52,"attrs":2557},{"color":54},{"type":41,"attrs":2559,"content":2560},{"textAlign":69},[2561],{"text":2562,"type":45,"marks":2563},"Here are some options to consolidate your debt: ",[2564],{"type":52,"attrs":2565},{"color":54},{"type":421,"attrs":2567,"content":2568},{"order":424},[2569,2643,2694],{"type":140,"content":2570},[2571,2614],{"type":41,"attrs":2572,"content":2573},{"textAlign":69},[2574,2580,2585,2595,2600,2609],{"text":2575,"type":45,"marks":2576},"Debt consolidation loan: ",[2577,2579],{"type":52,"attrs":2578},{"color":1499},{"type":112},{"text":2581,"type":45,"marks":2582},"One option to consolidate your debt is a ",[2583],{"type":52,"attrs":2584},{"color":54},{"text":2586,"type":45,"marks":2587},"personal loan",[2588,2592,2594],{"type":66,"attrs":2589},{"href":2590,"uuid":69,"anchor":69,"target":2591,"linktype":71},"https://www.earnest.com/personal-loans?utm_medium=organic&utm_source=navient_marketplace&utm_campaign=PL_rc_pro_genpop_20260331 ","_self",{"type":52,"attrs":2593},{"color":74},{"type":76},{"text":2596,"type":45,"marks":2597},". You can use the personal loan to pay off your debts and then make monthly loan payments instead of several different payments. ",[2598],{"type":52,"attrs":2599},{"color":54},{"text":2601,"type":45,"marks":2602},"Consolidating your debt with a personal loan",[2603,2606,2608],{"type":66,"attrs":2604},{"href":2605,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/personal-loan-to-pay-off-credit-card/",{"type":52,"attrs":2607},{"color":74},{"type":76},{"text":2610,"type":45,"marks":2611}," can potentially lower your interest rate, especially if you have high-interest debt. Lowering the interest rate on your debt will reduce your overall payments and the amount of interest paid. Paying off your debts with a personal loan may have other benefits, such as boosting your credit score. Managing a single debt may demonstrate financial responsibility to credit bureaus, possibly improving your creditworthiness. While there are benefits to debt consolidation with a personal loan, consider the drawbacks as well. Lenders may not approve a personal loan if your credit score is low. You also may not receive interest rates lower than your current interest rates. There are also costs associated with personal loans, such as origination fees. Consider all fees to understand the total cost of your personal loan.  ",[2612],{"type":52,"attrs":2613},{"color":54},{"type":41,"attrs":2615,"content":2616},{"textAlign":69},[2617,2625,2635],{"text":2618,"type":45,"marks":2619},"Apply for a personal loan",[2620,2622,2624],{"type":66,"attrs":2621},{"href":2590,"uuid":69,"anchor":69,"target":2591,"linktype":71},{"type":52,"attrs":2623},{"color":74},{"type":76},{"text":1849,"type":45,"marks":2626},[2627,2629,2631,2633,2634],{"type":66,"attrs":2628},{"href":2590,"uuid":69,"anchor":69,"target":2591,"linktype":71},{"type":52,"attrs":2630},{"color":74},{"type":48,"attrs":2632},{"class":1853},{"type":1853},{"type":76},{"text":2636,"type":45,"marks":2637}," >>",[2638,2640,2642],{"type":66,"attrs":2639},{"href":2590,"uuid":69,"anchor":69,"target":2591,"linktype":71},{"type":52,"attrs":2641},{"color":74},{"type":76},{"type":140,"content":2644},[2645,2692],{"type":41,"attrs":2646,"content":2647},{"textAlign":69},[2648,2654,2659,2664,2673,2678,2687],{"text":2649,"type":45,"marks":2650},"Balance transfer credit card:",[2651,2653],{"type":52,"attrs":2652},{"color":1499},{"type":112},{"text":2655,"type":45,"marks":2656}," ",[2657],{"type":52,"attrs":2658},{"color":1499},{"text":2660,"type":45,"marks":2661},"Another option is to consolidate your debt with a ",[2662],{"type":52,"attrs":2663},{"color":54},{"text":2665,"type":45,"marks":2666},"balance transfer credit card",[2667,2670,2672],{"type":66,"attrs":2668},{"href":2669,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/consumer-tools/credit-cards/answers/key-terms/#balance-transfer",{"type":52,"attrs":2671},{"color":74},{"type":76},{"text":2674,"type":45,"marks":2675},". This option is only for existing credit card debt, not other debt types like a mortgage or student loans. A benefit to consolidating your credit card debt with a balance transfer card is that many offer 0% APR for the first 12 months. Introductory offers typically allow you to make payments without paying interest for your first year. Balance transfer cards will also simplify your payments if you have multiple credit card debts. However, consider any ",[2676],{"type":52,"attrs":2677},{"color":54},{"text":2679,"type":45,"marks":2680},"balance transfer fees",[2681,2684,2686],{"type":66,"attrs":2682},{"href":2683,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-balance-transfer-fee-can-a-balance-transfer-fee-be-charged-on-a-zero-percent-interest-rate-offer-en-53/",{"type":52,"attrs":2685},{"color":74},{"type":76},{"text":2688,"type":45,"marks":2689}," before getting a balance transfer card. Usually, the fee will be a percentage of the amount transferred. Additional costs can impact the cost-effectiveness of consolidating your credit card debt, so factor this into your decision. It may be challenging to qualify for a balance transfer card with a low credit score or a history of late payments. Consolidating your credit card debt with a balance transfer card may be a good option if you can take advantage of the introductory offer and have a good credit score. ",[2690],{"type":52,"attrs":2691},{"color":54},{"type":41,"attrs":2693},{"textAlign":69},{"type":140,"content":2695},[2696],{"type":41,"attrs":2697,"content":2698},{"textAlign":69},[2699,2705,2709,2714,2723],{"text":2700,"type":45,"marks":2701},"Take out a HELOC:",[2702,2704],{"type":52,"attrs":2703},{"color":1499},{"type":112},{"text":2655,"type":45,"marks":2706},[2707],{"type":52,"attrs":2708},{"color":1499},{"text":2710,"type":45,"marks":2711},"Another option is to take out a ",[2712],{"type":52,"attrs":2713},{"color":54},{"text":2715,"type":45,"marks":2716},"home equity line of credit",[2717,2720,2722],{"type":66,"attrs":2718},{"href":2719,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://consumer.ftc.gov/articles/home-equity-loans-and-home-equity-lines-credit",{"type":52,"attrs":2721},{"color":74},{"type":76},{"text":2724,"type":45,"marks":2725},". This option may work for you if you’re a homeowner with equity. Typically, a certain amount of equity is required to qualify for a HELOC, usually around 20%. A HELOC allows you to borrow money against the equity in your home. With A HELOC, you can draw money multiple times up to the maximum HELOC amount. The benefits of consolidating your debt with a HELOC include lower interest rates, simplified payments, and flexibility. Home equity lines of credit can have lower interest rates than credit cards and other unsecured types of debt. They are also flexible and allow you to draw funds as needed. However, the biggest drawback is the risk to your homeownership. A HELOC is secured by your home, meaning you risk foreclosure if you miss payments. Consider your ability to make payments and the potential risk before taking out a HELOC. ",[2726],{"type":52,"attrs":2727},{"color":54},{"type":104,"attrs":2729,"content":2730},{"level":106,"textAlign":69},[2731],{"text":2732,"type":45,"marks":2733},"The Best Way to Pay Off Your Debt is to Pick a Plan You’ll Stick With",[2734,2736],{"type":52,"attrs":2735},{"color":54},{"type":112},{"type":41,"attrs":2738,"content":2739},{"textAlign":69},[2740,2745,2753],{"text":2741,"type":45,"marks":2742},"Remember that the best method to pay off your debt is the one you can commit to. Don’t feel like you have to use a particular approach if you don’t believe it will be sustainable for you in the long run. If you want to consolidate your debt, ",[2743],{"type":52,"attrs":2744},{"color":54},{"text":2746,"type":45,"marks":2747},"Navient Marketplace has customized financial solutions",[2748,2750,2752],{"type":66,"attrs":2749},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":2751},{"color":74},{"type":76},{"text":2754,"type":45,"marks":2755}," that can help you become debt-free. ",[2756],{"type":52,"attrs":2757},{"color":54},{"type":41,"attrs":2759,"content":2760},{"textAlign":69},[2761],{"text":607,"type":45,"marks":2762},[2763,2765],{"type":52,"attrs":2764},{"color":54},{"type":48,"attrs":2766},{"class":50},{"type":41,"attrs":2768,"content":2769},{"textAlign":69},[2770,2776],{"text":1849,"type":45,"marks":2771},[2772,2774],{"type":52,"attrs":2773},{"color":54},{"type":48,"attrs":2775},{"class":1853},{"text":2777,"type":45,"marks":2778},"Navient customers are invited to consider personal loan offers through our partner Fiona. Navient has not shared your information with Fiona and is not involved in the personal loan application process in any manner. All information is submitted directly to Fiona and any personal loan offers are made directly by participants in Fiona’s lending platform, powered by Even Financial. Even Financial, Inc. is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE:ML). Checking your rate will not affect your credit score. Eligibility is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. ",[2779,2781],{"type":52,"attrs":2780},{"color":54},{"type":48,"attrs":2782},{"class":50},{"type":41,"attrs":2784,"content":2785},{"textAlign":69},[2786],{"text":1984,"type":45,"marks":2787},[2788,2790],{"type":52,"attrs":2789},{"color":54},{"type":48,"attrs":2791},{"class":50},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798158\"}-->","https://www.marketplace.navient.com/blog/which-debt-should-i-pay-off-first/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798158\"}-->","which-debt-should-i-pay-off-first","navient_marketplace/blog/which-debt-should-i-pay-off-first",[],"1a81a2d0-664d-4cbb-8826-0829c0be4314","2023-09-26T16:17:56.227Z","blog/which-debt-should-i-pay-off-first/",[],{"name":2803,"created_at":2804,"published_at":2805,"updated_at":2806,"id":2807,"uuid":2808,"content":2809,"slug":3397,"full_slug":3398,"sort_by_date":69,"position":629,"tag_list":3399,"is_startpage":28,"parent_id":631,"meta_data":69,"group_id":3400,"first_published_at":3401,"release_id":69,"lang":634,"path":3402,"alternates":3403,"default_full_slug":69,"translated_slugs":69},"How to Budget When You’re Broke","2025-04-07T18:30:18.017Z","2025-12-26T13:44:59.861Z","2025-12-26T13:44:59.926Z",651798157,"16b94920-acf2-431d-ab1b-facc6bbdf1ec",{"seo":2810,"_uid":20,"hero":2813,"author":30,"category":1383,"featured":28,"imageAlt":18,"component":32,"blogContents":2818,"canonicalTag":3395,"publishedDate":625,"_editable":3396},{"_uid":15,"title":2811,"plugin":17,"og_image":18,"og_title":18,"description":2812,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"How to Budget When You’re Broke | Navient Marketplace","It’s always smart to have a budget, especially when you’re tight on money. Read our guide to take your budgeting skills to the next level.",[2814],{"id":18,"_uid":23,"image":2815,"intro":2812,"classes":18,"_editable":2816,"blogTitle":2803,"component":26,"imageLink":2817,"blendImage":28,"backgroundColor":29},"//a.storyblok.com/f/110029/4471x3357/5586b5fc94/how-to-budget-when-youre-broke.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798157\"}-->","/images/how-to-budget-when-youre-broke.png",[2819],{"_uid":35,"color":36,"richText":2820,"_editable":3394,"component":623},{"type":38,"content":2821},[2822,2830,2851,2860,2867,2876,2883,2904,2911,2932,2941,2962,2970,2978,2986,2994,3001,3050,3066,3074,3082,3090,3098,3118,3125,3132,3139,3147,3155,3163,3171,3186,3193,3200,3208,3216,3224,3232,3247,3254,3261,3270,3277,3284,3305,3314,3321,3328,3337,3344,3351,3360,3367,3386],{"type":41,"content":2823},[2824],{"text":44,"type":45,"marks":2825},[2826,2828],{"type":48,"attrs":2827},{"class":50},{"type":52,"attrs":2829},{"color":54},{"type":41,"content":2831},[2832,2837,2846],{"text":2833,"type":45,"marks":2834},"One of the best ways to take control of your finances is to ",[2835],{"type":52,"attrs":2836},{"color":54},{"text":2838,"type":45,"marks":2839},"make and stick to a personal budget",[2840,2843,2845],{"type":66,"attrs":2841},{"href":2842,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://consumer.gov/managing-your-money/making-budget#what-it-is",{"type":52,"attrs":2844},{"color":74},{"type":76},{"text":2847,"type":45,"marks":2848},". A budget is a monthly plan for your spending that takes into account your needs and wants. It can help you set spending limits, stay or become debt-free, and save for your future. ",[2849],{"type":52,"attrs":2850},{"color":54},{"type":104,"attrs":2852,"content":2853},{"level":106},[2854],{"text":2855,"type":45,"marks":2856},"Key Tips for Budgeting",[2857,2858],{"type":112},{"type":52,"attrs":2859},{"color":54},{"type":41,"content":2861},[2862],{"text":2863,"type":45,"marks":2864},"Budgeting doesn’t have to be overly complicated. Here are some key budgeting tips to help you while creating and following your monthly budget: ",[2865],{"type":52,"attrs":2866},{"color":54},{"type":104,"attrs":2868,"content":2869},{"level":106},[2870],{"text":2871,"type":45,"marks":2872},"Understand your monthly income and spending habits",[2873,2874],{"type":112},{"type":52,"attrs":2875},{"color":54},{"type":41,"content":2877},[2878],{"text":2879,"type":45,"marks":2880},"Before planning your budget, calculate your monthly income and expenses. Your monthly income is your net pay or ‘take-home pay.’ It is what you earn after your taxes are taken out. This includes earnings from your job and any other side hustles. ",[2881],{"type":52,"attrs":2882},{"color":54},{"type":41,"content":2884},[2885,2890,2899],{"text":2886,"type":45,"marks":2887},"To help calculate an accurate monthly income, use an ",[2888],{"type":52,"attrs":2889},{"color":54},{"text":2891,"type":45,"marks":2892},"income and benefits tracker",[2893,2896,2898],{"type":66,"attrs":2894},{"href":2895,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/cfpb_your-money-your-goals_income_benefits_tool_2018-11_ADA.pdf",{"type":52,"attrs":2897},{"color":74},{"type":76},{"text":2900,"type":45,"marks":2901},". If your income fluctuates month to month, you can take the average of what you make in a year and divide by 12. ",[2902],{"type":52,"attrs":2903},{"color":54},{"type":41,"content":2905},[2906],{"text":2907,"type":45,"marks":2908},"Once you have calculated your monthly income, take a look at your monthly expenses. Your monthly expenses are everything you spend money on in a month.",[2909],{"type":52,"attrs":2910},{"color":54},{"type":41,"content":2912},[2913,2918,2927],{"text":2914,"type":45,"marks":2915},"To calculate your monthly expenses, take a look at your bank statements to see what you have spent your money on. Alternatively, you could track your spending daily and keep your receipts to add it all up at the end of the month. Use a ",[2916],{"type":52,"attrs":2917},{"color":54},{"text":2919,"type":45,"marks":2920},"spending tracker",[2921,2924,2926],{"type":66,"attrs":2922},{"href":2923,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/cfpb_well-being_spending-tracker.pdf",{"type":52,"attrs":2925},{"color":74},{"type":76},{"text":2928,"type":45,"marks":2929}," to make adding up your expenses easier. ",[2930],{"type":52,"attrs":2931},{"color":54},{"type":104,"attrs":2933,"content":2934},{"level":106},[2935],{"text":2936,"type":45,"marks":2937},"Choose a budgeting method",[2938,2939],{"type":112},{"type":52,"attrs":2940},{"color":54},{"type":41,"content":2942},[2943,2948,2957],{"text":2944,"type":45,"marks":2945},"Once you know your monthly income and spending habits, you can ",[2946],{"type":52,"attrs":2947},{"color":54},{"text":2949,"type":45,"marks":2950},"start making your budget",[2951,2954,2956],{"type":66,"attrs":2952},{"href":2953,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/about-us/blog/budgeting-how-to-create-a-budget-and-stick-with-it/",{"type":52,"attrs":2955},{"color":74},{"type":76},{"text":2958,"type":45,"marks":2959},". There are many different methods of budgeting to choose from. The right budgeting method for you will depend on your goals and current financial situation. Here are some common budgeting methods: ",[2960],{"type":52,"attrs":2961},{"color":54},{"type":104,"attrs":2963,"content":2964},{"level":244},[2965],{"text":2966,"type":45,"marks":2967},"50/30/20 Budgeting",[2968],{"type":52,"attrs":2969},{"color":1499},{"type":41,"content":2971},[2972],{"text":2973,"type":45,"marks":2974},"Best for: budgeting beginners ",[2975,2976],{"type":2077},{"type":52,"attrs":2977},{"color":54},{"type":41,"content":2979},[2980],{"text":2981,"type":45,"marks":2982},"Pros: easy to implement; can be adjusted as needed",[2983,2984],{"type":2077},{"type":52,"attrs":2985},{"color":54},{"type":41,"content":2987},[2988],{"text":2989,"type":45,"marks":2990},"Cons: may not work for those with more debt or large savings goals ",[2991,2992],{"type":2077},{"type":52,"attrs":2993},{"color":54},{"type":41,"content":2995},[2996],{"text":2997,"type":45,"marks":2998},"This method breaks down your spending into three categories:",[2999],{"type":52,"attrs":3000},{"color":54},{"type":421,"attrs":3002,"content":3004},{"order":3003},{"order":424},[3005,3020,3035],{"type":140,"content":3006},[3007],{"type":41,"content":3008},[3009,3015],{"text":3010,"type":45,"marks":3011},"Needs (50%): ",[3012,3013],{"type":112},{"type":52,"attrs":3014},{"color":54},{"text":3016,"type":45,"marks":3017},"Necessary expenses such as your rent, utilities, car payment, and medical bills.",[3018],{"type":52,"attrs":3019},{"color":54},{"type":140,"content":3021},[3022],{"type":41,"content":3023},[3024,3030],{"text":3025,"type":45,"marks":3026},"Wants (30%): ",[3027,3028],{"type":112},{"type":52,"attrs":3029},{"color":54},{"text":3031,"type":45,"marks":3032},"Discretionary spending including dining out and entertainment. ",[3033],{"type":52,"attrs":3034},{"color":54},{"type":140,"content":3036},[3037],{"type":41,"content":3038},[3039,3045],{"text":3040,"type":45,"marks":3041},"Savings and Debt payments (20%): ",[3042,3043],{"type":112},{"type":52,"attrs":3044},{"color":54},{"text":3046,"type":45,"marks":3047},"Money put towards paying off debt such as your student loans or saving for future goals. ",[3048],{"type":52,"attrs":3049},{"color":54},{"type":41,"content":3051},[3052,3061],{"text":3053,"type":45,"marks":3054},"The 50/30/20",[3055,3058,3060],{"type":66,"attrs":3056},{"href":3057,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://srfs.upenn.edu/financial-wellness/browse-topics/budgeting/popular-budgeting-strategies",{"type":52,"attrs":3059},{"color":74},{"type":76},{"text":3062,"type":45,"marks":3063}," budgeting method is easy for budgeting beginners. If you are looking for a simple budgeting method to implement, this may work for you! However, this method may not work for individuals with higher debt obligations and those that are looking to save more.  ",[3064],{"type":52,"attrs":3065},{"color":54},{"type":104,"attrs":3067,"content":3068},{"level":244},[3069],{"text":3070,"type":45,"marks":3071},"Zero-Based Budgeting",[3072],{"type":52,"attrs":3073},{"color":1499},{"type":41,"content":3075},[3076],{"text":3077,"type":45,"marks":3078},"Best for: taking full control of your spending",[3079,3080],{"type":2077},{"type":52,"attrs":3081},{"color":54},{"type":41,"content":3083},[3084],{"text":3085,"type":45,"marks":3086},"Pros: accounts for every single dollar of your income",[3087,3088],{"type":2077},{"type":52,"attrs":3089},{"color":54},{"type":41,"content":3091},[3092],{"text":3093,"type":45,"marks":3094},"Cons: intensive and requires precise planning – to the dollar",[3095,3096],{"type":2077},{"type":52,"attrs":3097},{"color":54},{"type":41,"content":3099},[3100,3105,3113],{"text":3101,"type":45,"marks":3102},"With ",[3103],{"type":52,"attrs":3104},{"color":54},{"text":3106,"type":45,"marks":3107},"zero-based budgeting",[3108,3110,3112],{"type":66,"attrs":3109},{"href":3057,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3111},{"color":74},{"type":76},{"text":3114,"type":45,"marks":3115},", every dollar of your income is put to use. With this budgeting method, your income minus your expenses should equal zero. Zero-based budgeting would be best for individuals with a consistent monthly income.",[3116],{"type":52,"attrs":3117},{"color":54},{"type":41,"content":3119},[3120],{"text":3121,"type":45,"marks":3122},"Zero-based budgeting is not the same as living paycheck to paycheck. It means that every dollar of your income is spent thoughtfully and put towards your financial needs, like savings, entertainment, or paying off debt. ",[3123],{"type":52,"attrs":3124},{"color":54},{"type":41,"content":3126},[3127],{"text":3128,"type":45,"marks":3129},"To create this type of budget, dedicate a certain amount of your income to every expense you will have that month (rent, utilities, dining out, entertainment, debt payments, savings etc.) until you have planned for every dollar of your income. It requires precise planning and a great understanding of your monthly income and expenditures. ",[3130],{"type":52,"attrs":3131},{"color":54},{"type":41,"content":3133},[3134],{"text":3135,"type":45,"marks":3136},"This method is more intensive as it requires you to track every single dollar. This may work for those who understand their spending habits and want full control of their spending. It may not be best for those who cannot predict exact expenses for the month or who are new to budgeting. ",[3137],{"type":52,"attrs":3138},{"color":54},{"type":104,"attrs":3140,"content":3141},{"level":244},[3142],{"text":3143,"type":45,"marks":3144},"Envelope Budgeting ",[3145],{"type":52,"attrs":3146},{"color":1499},{"type":41,"content":3148},[3149],{"text":3150,"type":45,"marks":3151},"Best for: precise planning and individuals who like to pay with cash",[3152,3153],{"type":2077},{"type":52,"attrs":3154},{"color":54},{"type":41,"content":3156},[3157],{"text":3158,"type":45,"marks":3159},"Pros: tangible reminder of your budget",[3160,3161],{"type":2077},{"type":52,"attrs":3162},{"color":54},{"type":41,"content":3164},[3165],{"text":3166,"type":45,"marks":3167},"Cons: requires handling large amounts of cash",[3168,3169],{"type":2077},{"type":52,"attrs":3170},{"color":54},{"type":41,"content":3172},[3173,3181],{"text":3174,"type":45,"marks":3175},"Envelope budgeting",[3176,3178,3180],{"type":66,"attrs":3177},{"href":3057,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3179},{"color":74},{"type":76},{"text":3182,"type":45,"marks":3183}," is similar to zero-based budgeting, but done entirely with cash. Once you decide how much of your income will go to each spending category, get envelopes for each. Label the envelopes for the appropriate category (groceries, utilities, gas, etc.). ",[3184],{"type":52,"attrs":3185},{"color":54},{"type":41,"content":3187},[3188],{"text":3189,"type":45,"marks":3190},"Once you have used all of the money in the envelope for that category, you cannot spend any more in that category until the next month. In case of emergency, you can take money from another envelope. However, if it becomes a habit, that is a sign you are not budgeting effectively. ",[3191],{"type":52,"attrs":3192},{"color":54},{"type":41,"content":3194},[3195],{"text":3196,"type":45,"marks":3197},"This method may work for those that like to have a tangible reminder of their budget. It can also be effective at preventing overspending in each category. Envelope budgeting may not be right for you if you do not feel comfortable holding onto cash or prefer digital transactions. ",[3198],{"type":52,"attrs":3199},{"color":54},{"type":104,"attrs":3201,"content":3202},{"level":244},[3203],{"text":3204,"type":45,"marks":3205},"Pay-Yourself-First Budgeting",[3206],{"type":52,"attrs":3207},{"color":1499},{"type":41,"content":3209},[3210],{"text":3211,"type":45,"marks":3212},"Best for: paying off your debts and contributing to your savings",[3213,3214],{"type":2077},{"type":52,"attrs":3215},{"color":54},{"type":41,"content":3217},[3218],{"text":3219,"type":45,"marks":3220},"Pros: leaves room to spend your discretionary money however you like",[3221,3222],{"type":2077},{"type":52,"attrs":3223},{"color":54},{"type":41,"content":3225},[3226],{"text":3227,"type":45,"marks":3228},"Cons: does not consider how you could save money on a day-to-day basis",[3229,3230],{"type":2077},{"type":52,"attrs":3231},{"color":54},{"type":41,"content":3233},[3234,3242],{"text":3235,"type":45,"marks":3236},"Pay-yourself-first budgeting",[3237,3239,3241],{"type":66,"attrs":3238},{"href":3057,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3240},{"color":74},{"type":76},{"text":3243,"type":45,"marks":3244}," is simple yet effective, and focuses mostly on debt repayment and savings. ",[3245],{"type":52,"attrs":3246},{"color":54},{"type":41,"content":3248},[3249],{"text":3250,"type":45,"marks":3251},"Simply budget for how much you would like to save or put towards your debt. After you have saved the allotted amount, you can spend your money however you like. Of course, it is still important to prioritize necessary expenses. ",[3252],{"type":52,"attrs":3253},{"color":54},{"type":41,"content":3255},[3256],{"text":3257,"type":45,"marks":3258},"Pay-yourself-first budgeting may work for those that don’t like to budget every single expense, but still want to work towards saving. With this method, you are working towards your goals without having to worry about your discretionary spending. However, if you are looking to be more effective with your money in every category of spending, this may not be for you. ",[3259],{"type":52,"attrs":3260},{"color":54},{"type":104,"attrs":3262,"content":3263},{"level":106},[3264],{"text":3265,"type":45,"marks":3266},"Track your spending and progress",[3267,3268],{"type":112},{"type":52,"attrs":3269},{"color":54},{"type":41,"content":3271},[3272],{"text":3273,"type":45,"marks":3274},"Once you have chosen a budgeting method and implemented your budget, it is essential to keep track of your progress. Without holding yourself accountable to the budget you just worked so hard to create, you can get off track and miss your financial goals. ",[3275],{"type":52,"attrs":3276},{"color":54},{"type":41,"content":3278},[3279],{"text":3280,"type":45,"marks":3281},"Come up with ways to track your spending and progress. Take the time to review your bank account statements or receipts at the end of each week. Note when you are reaching an expense limit in your discretionary spending and see where you can cut back. ",[3282],{"type":52,"attrs":3283},{"color":54},{"type":41,"content":3285},[3286,3291,3300],{"text":3287,"type":45,"marks":3288},"If you like to keep up to date with your progress digitally, consider ",[3289],{"type":52,"attrs":3290},{"color":54},{"text":3292,"type":45,"marks":3293},"downloading a budgeting app",[3294,3297,3299],{"type":66,"attrs":3295},{"href":3296,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://mint.intuit.com/how-mint-works",{"type":52,"attrs":3298},{"color":74},{"type":76},{"text":3301,"type":45,"marks":3302},". Using a budgeting app or keeping a detailed spreadsheet may motivate you to stick to your budget and remind you of your goals. If you’d rather keep things on pen and paper, start a spending journal. ",[3303],{"type":52,"attrs":3304},{"color":54},{"type":104,"attrs":3306,"content":3307},{"level":106},[3308],{"text":3309,"type":45,"marks":3310},"Set goals and work towards them",[3311,3312],{"type":112},{"type":52,"attrs":3313},{"color":54},{"type":41,"content":3315},[3316],{"text":3317,"type":45,"marks":3318},"When you are budgeting, it can be easy to lose sight of why you are doing it. Following through with your plans can be overwhelming. The best way to stick with it is to set goals to help you remember why you are budgeting.  ",[3319],{"type":52,"attrs":3320},{"color":54},{"type":41,"content":3322},[3323],{"text":3324,"type":45,"marks":3325},"Whether you are trying to put away more money each month to pay off your student loans, or build up an emergency fund, your goals can motivate you. Remember that a strict budget doesn’t have to be forever and your budget will pay off and help achieve your goals. ",[3326],{"type":52,"attrs":3327},{"color":54},{"type":104,"attrs":3329,"content":3330},{"level":106},[3331],{"text":3332,"type":45,"marks":3333},"Update your budget when necessary",[3334,3335],{"type":112},{"type":52,"attrs":3336},{"color":54},{"type":41,"content":3338},[3339],{"text":3340,"type":45,"marks":3341},"As your financial situation changes, your budget should change as well. If you eventually achieve a higher monthly income, your budget should change to account for that. Similarly, if you encounter large unexpected expenses, you should adjust your budget to account for that as well. ",[3342],{"type":52,"attrs":3343},{"color":54},{"type":41,"content":3345},[3346],{"text":3347,"type":45,"marks":3348},"When you meet your savings goals or pay off your debt, you can adjust your budget to not include those expenses. This will leave extra money for spending on what you enjoy while retaining financial stability. After all, it’s time to enjoy the rewards of sticking with your budget! ",[3349],{"type":52,"attrs":3350},{"color":54},{"type":104,"attrs":3352,"content":3353},{"level":106},[3354],{"text":3355,"type":45,"marks":3356},"Why Should You Have a Budget?",[3357,3358],{"type":112},{"type":52,"attrs":3359},{"color":54},{"type":41,"content":3361},[3362],{"text":3363,"type":45,"marks":3364},"Budgeting will help you be more thoughtful with how you spend your money. It can also keep you from acquiring more debt by spending more than you have. Whether it’s your first time budgeting or you are budgeting pro, putting a budget together can help you achieve your financial goals. ",[3365],{"type":52,"attrs":3366},{"color":54},{"type":41,"content":3368},[3369,3374,3381],{"text":3370,"type":45,"marks":3371},"Looking to improve even more of your financial wellness? Visit ",[3372],{"type":52,"attrs":3373},{"color":54},{"text":230,"type":45,"marks":3375},[3376,3378,3380],{"type":66,"attrs":3377},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3379},{"color":74},{"type":76},{"text":3382,"type":45,"marks":3383}," for personalized banking and finance products. ",[3384],{"type":52,"attrs":3385},{"color":54},{"type":41,"content":3387},[3388],{"text":607,"type":45,"marks":3389},[3390,3392],{"type":48,"attrs":3391},{"class":50},{"type":52,"attrs":3393},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798157\"}-->","https://www.marketplace.navient.com/blog/how-to-budget-when-youre-broke/","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798157\"}-->","how-to-budget-when-youre-broke","navient_marketplace/blog/how-to-budget-when-youre-broke",[],"382dbe21-a040-412a-8c21-561d1fe4c915","2023-09-26T16:18:38.954Z","blog/how-to-budget-when-youre-broke",[],{"name":3405,"created_at":3406,"published_at":3407,"updated_at":3408,"id":3409,"uuid":3410,"content":3411,"slug":3975,"full_slug":3976,"sort_by_date":69,"position":3977,"tag_list":3978,"is_startpage":28,"parent_id":631,"meta_data":69,"group_id":3979,"first_published_at":3980,"release_id":69,"lang":634,"path":3981,"alternates":3982,"default_full_slug":69,"translated_slugs":69},"How to Ask Someone to Cosign a Personal Loan","2025-04-07T18:30:40.199Z","2026-04-01T16:46:49.478Z","2026-04-01T16:46:49.497Z",651798171,"44b1f693-73fd-4163-bd69-ff62aafd8b4d",{"seo":3412,"_uid":3415,"hero":3416,"author":30,"category":1531,"featured":28,"imageAlt":18,"component":32,"blogContents":3423,"canonicalTag":3972,"publishedDate":3973,"_editable":3974},{"_uid":3413,"title":3405,"plugin":17,"og_image":18,"og_title":18,"description":3414,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"0467bfe8-b659-46a2-8fef-63565d18c79e","Having a cosigner can help you get a lower interest rate and better loan terms. Here’s how to have the conversation.\n","d91154f9-9ecc-44c5-890b-35a1d510220e",[3417],{"id":18,"_uid":3418,"image":3419,"intro":3420,"classes":18,"_editable":3421,"blogTitle":3405,"component":26,"imageLink":3422,"blendImage":28,"backgroundColor":29},"5faafd7f-291f-47c6-a91e-6de5ce44f5cb","//a.storyblok.com/f/110029/1020x678/7a64795b29/how-to-ask-someone-to-cosign-a-personal-loan.png","Having a cosigner can help you get a lower interest rate and better loan terms. Here’s how to have the conversation.","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"5faafd7f-291f-47c6-a91e-6de5ce44f5cb\", \"id\": \"651798171\"}-->","/images/how-to-ask-someone-to-cosign-a-personal-loan.png",[3424],{"_uid":3425,"color":36,"richText":3426,"_editable":3971,"component":623},"d38fe98a-274f-4440-a601-d08e92fddf31",{"type":38,"content":3427},[3428,3438,3473,3493,3502,3523,3531,3539,3548,3564,3573,3782,3791,3803,3824,3832,3844,3852,3864,3872,3884,3904,3912,3921,3942,3951,3961],{"type":41,"attrs":3429,"content":3430},{"textAlign":69},[3431],{"text":44,"type":45,"marks":3432},[3433,3435,3436],{"type":52,"attrs":3434},{"color":54},{"type":2077},{"type":48,"attrs":3437},{"class":50},{"type":41,"attrs":3439,"content":3440},{"textAlign":69},[3441,3446,3455,3460,3468],{"text":3442,"type":45,"marks":3443},"Do you need a ",[3444],{"type":52,"attrs":3445},{"color":54},{"text":3447,"type":45,"marks":3448},"cosigner",[3449,3452,3454],{"type":66,"attrs":3450},{"href":3451,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-cosigner-student-loan-en-565/",{"type":52,"attrs":3453},{"color":74},{"type":76},{"text":3456,"type":45,"marks":3457}," to qualify for a ",[3458],{"type":52,"attrs":3459},{"color":54},{"text":2586,"type":45,"marks":3461},[3462,3465,3467],{"type":66,"attrs":3463},{"href":3464,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/blog/what-is-a-personal-loan/",{"type":52,"attrs":3466},{"color":74},{"type":76},{"text":3469,"type":45,"marks":3470},", or will a cosigner significantly improve your loan terms? If so, you should consider who might cosign your loan and how you should ask them. ",[3471],{"type":52,"attrs":3472},{"color":54},{"type":41,"attrs":3474,"content":3475},{"textAlign":69},[3476,3481,3488],{"text":3477,"type":45,"marks":3478},"It is important to be prepared for this conversation to show your potential cosigner that you are responsible and capable of repaying the loan. ",[3479],{"type":52,"attrs":3480},{"color":54},{"text":230,"type":45,"marks":3482},[3483,3485,3487],{"type":66,"attrs":3484},{"href":89,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3486},{"color":74},{"type":76},{"text":3489,"type":45,"marks":3490}," is here to help you learn how to ask a cosigner to share this financial responsibility. ",[3491],{"type":52,"attrs":3492},{"color":54},{"type":104,"attrs":3494,"content":3495},{"level":106,"textAlign":69},[3496],{"text":3497,"type":45,"marks":3498},"Choose Your Cosigner Wisely",[3499,3501],{"type":52,"attrs":3500},{"color":54},{"type":112},{"type":41,"attrs":3503,"content":3504},{"textAlign":69},[3505,3510,3518],{"text":3506,"type":45,"marks":3507},"A cosigner is agreeing to ",[3508],{"type":52,"attrs":3509},{"color":54},{"text":3511,"type":45,"marks":3512},"legal responsibility for your loan",[3513,3515,3517],{"type":66,"attrs":3514},{"href":3451,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3516},{"color":74},{"type":76},{"text":3519,"type":45,"marks":3520}," and its repayment obligations. Therefore, it is important to choose someone that you trust. Cosigners are typically close friends or a family member. ",[3521],{"type":52,"attrs":3522},{"color":54},{"type":41,"attrs":3524,"content":3525},{"textAlign":69},[3526],{"text":3527,"type":45,"marks":3528},"The cosigner should be financially stable and have a good credit history. A cosigner with excellent credit can increase your chances of being approved and securing favorable loan terms. It will also mean that if you are unable to make your payments for any reason, the cosigner will likely be able to. ",[3529],{"type":52,"attrs":3530},{"color":54},{"type":41,"attrs":3532,"content":3533},{"textAlign":69},[3534],{"text":3535,"type":45,"marks":3536},"It is also important to choose someone you can be open and honest with. If something comes up and you have trouble making payments, it will be important to tell your cosigner right away. Having a cosigner that you have good communication with will make the entire process smoother. ",[3537],{"type":52,"attrs":3538},{"color":54},{"type":104,"attrs":3540,"content":3541},{"level":106,"textAlign":69},[3542],{"text":3543,"type":45,"marks":3544},"Advantages of Having a Cosigner",[3545,3547],{"type":52,"attrs":3546},{"color":54},{"type":112},{"type":41,"attrs":3549,"content":3550},{"textAlign":69},[3551,3559],{"text":3552,"type":45,"marks":3553},"There are several advantages",[3554,3556,3558],{"type":66,"attrs":3555},{"href":3451,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3557},{"color":74},{"type":76},{"text":3560,"type":45,"marks":3561}," to having a cosigner. Loan lenders are more willing to approve the loan application of a borrower with strong credit over an individual with bad credit. They are also more likely to give better repayment terms and lower interest rates based on the cosigner's creditworthiness. Having a cosigner on your loan can be convenient to you as a borrower if you have little credit history or poor credit. ",[3562],{"type":52,"attrs":3563},{"color":54},{"type":104,"attrs":3565,"content":3566},{"level":106,"textAlign":69},[3567],{"text":3568,"type":45,"marks":3569},"How to Ask Someone to be a Cosigner:",[3570,3572],{"type":52,"attrs":3571},{"color":54},{"type":112},{"type":421,"attrs":3574,"content":3575},{"order":424},[3576,3595,3635,3702,3751],{"type":140,"content":3577},[3578,3587],{"type":41,"attrs":3579,"content":3580},{"textAlign":69},[3581],{"text":3582,"type":45,"marks":3583},"Tell them why you’re taking the loan out",[3584,3586],{"type":52,"attrs":3585},{"color":54},{"type":112},{"type":41,"attrs":3588,"content":3589},{"textAlign":69},[3590],{"text":3591,"type":45,"marks":3592},"Make it clear to your cosigner why you need the personal loan. Whether you are purchasing a car or consolidating your debt, explain your personal and financial goals. A cosigner is more likely to agree to help you if they understand your reasoning and agree that the loan will be beneficial for you. ",[3593],{"type":52,"attrs":3594},{"color":54},{"type":140,"content":3596},[3597,3606,3627],{"type":41,"attrs":3598,"content":3599},{"textAlign":69},[3600],{"text":3601,"type":45,"marks":3602},"Explain how a cosigner can help your application and loan terms",[3603,3605],{"type":52,"attrs":3604},{"color":54},{"type":112},{"type":41,"attrs":3607,"content":3608},{"textAlign":69},[3609,3614,3622],{"text":3610,"type":45,"marks":3611},"Let your cosigner know the positive impact that cosigning could have. Explain that you will have a ",[3612],{"type":52,"attrs":3613},{"color":54},{"text":3615,"type":45,"marks":3616},"greater likelihood of being approved",[3617,3619,3621],{"type":66,"attrs":3618},{"href":3451,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3620},{"color":74},{"type":76},{"text":3623,"type":45,"marks":3624}," and more favorable loan terms. ",[3625],{"type":52,"attrs":3626},{"color":54},{"type":41,"attrs":3628,"content":3629},{"textAlign":69},[3630],{"text":3631,"type":45,"marks":3632},"This loan is also an opportunity for you to build your credit and prove your creditworthiness. Your cosigner is helping you with more than they may realize. ",[3633],{"type":52,"attrs":3634},{"color":54},{"type":140,"content":3636},[3637,3650,3658,3666],{"type":41,"attrs":3638,"content":3639},{"textAlign":69},[3640,3646],{"text":3641,"type":45,"marks":3642},"Make sure they understand their responsibility as a cosigner",[3643,3645],{"type":52,"attrs":3644},{"color":54},{"type":112},{"text":2655,"type":45,"marks":3647},[3648],{"type":52,"attrs":3649},{"color":54},{"type":41,"attrs":3651,"content":3652},{"textAlign":69},[3653],{"text":3654,"type":45,"marks":3655},"Cosigning a loan is a huge responsibility. It is important for you to understand your responsibilities as the primary borrower, and it is equally important for the cosigner to understand their responsibilities as well. ",[3656],{"type":52,"attrs":3657},{"color":54},{"type":41,"attrs":3659,"content":3660},{"textAlign":69},[3661],{"text":3662,"type":45,"marks":3663},"Agreeing to cosign a loan means your cosigner has a legal obligation to the loan repayment. They are jointly accepting responsibility and will be held accountable for any missed or late payments. If the loan defaults or has missed payments, it can hurt both your credit and your cosigner's credit. ",[3664],{"type":52,"attrs":3665},{"color":54},{"type":41,"attrs":3667,"content":3668},{"textAlign":69},[3669,3674,3683,3688,3697],{"text":3670,"type":45,"marks":3671},"Make sure that your cosigner knows what responsibilities come with cosigning on your loan. ",[3672],{"type":52,"attrs":3673},{"color":54},{"text":3675,"type":45,"marks":3676},"Share resources",[3677,3680,3682],{"type":66,"attrs":3678},{"href":3679,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/paying-for-college/repay-student-debt/student-loan-cosigners/",{"type":52,"attrs":3681},{"color":74},{"type":76},{"text":3684,"type":45,"marks":3685}," that help them understand ",[3686],{"type":52,"attrs":3687},{"color":54},{"text":3689,"type":45,"marks":3690},"what cosigning entails",[3691,3694,3696],{"type":66,"attrs":3692},{"href":3693,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://consumer.ftc.gov/articles/cosigning-loan-faqs",{"type":52,"attrs":3695},{"color":74},{"type":76},{"text":3698,"type":45,"marks":3699}," and how they can be prepared to assist you as well as protect their own credit. ",[3700],{"type":52,"attrs":3701},{"color":54},{"type":140,"content":3703},[3704,3713,3735,3743],{"type":41,"attrs":3705,"content":3706},{"textAlign":69},[3707],{"text":3708,"type":45,"marks":3709},"Discuss your plans to repay the loan",[3710,3712],{"type":52,"attrs":3711},{"color":54},{"type":112},{"type":41,"attrs":3714,"content":3715},{"textAlign":69},[3716,3721,3730],{"text":3717,"type":45,"marks":3718},"When you are talking with your cosigner, come prepared with ",[3719],{"type":52,"attrs":3720},{"color":54},{"text":3722,"type":45,"marks":3723},"a copy of your credit report",[3724,3727,3729],{"type":66,"attrs":3725},{"href":3726,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-a-copy-of-my-credit-reports-en-5/",{"type":52,"attrs":3728},{"color":74},{"type":76},{"text":3731,"type":45,"marks":3732}," and information on your income. Share your budgeting strategies and other steps you have taken to ensure you can make monthly payments. This will show your cosigner you are taking this responsibility seriously. ",[3733],{"type":52,"attrs":3734},{"color":54},{"type":41,"attrs":3736,"content":3737},{"textAlign":69},[3738],{"text":3739,"type":45,"marks":3740},"Discuss your specific plan for repaying the loan. Are you going to make the payment every month? Or would your cosigner rather pay it and be repaid to ensure on-time payments? Your repayment plan will vary depending on what you and your cosigner are most comfortable with. ",[3741],{"type":52,"attrs":3742},{"color":54},{"type":41,"attrs":3744,"content":3745},{"textAlign":69},[3746],{"text":3747,"type":45,"marks":3748},"Regardless of how you decide to repay the loan, make sure you and your cosigner have agreed on it before the loan is taken out. ",[3749],{"type":52,"attrs":3750},{"color":54},{"type":140,"content":3752},[3753,3766,3774],{"type":41,"attrs":3754,"content":3755},{"textAlign":69},[3756,3762],{"text":3757,"type":45,"marks":3758},"Agree on what you’ll do if you can’t repay the loan",[3759,3761],{"type":52,"attrs":3760},{"color":54},{"type":112},{"text":2655,"type":45,"marks":3763},[3764],{"type":52,"attrs":3765},{"color":54},{"type":41,"attrs":3767,"content":3768},{"textAlign":69},[3769],{"text":3770,"type":45,"marks":3771},"Consider and discuss what will happen in the event you are unable to make a payment. Or, if you will be unable to repay the entire loan. ",[3772],{"type":52,"attrs":3773},{"color":54},{"type":41,"attrs":3775,"content":3776},{"textAlign":69},[3777],{"text":3778,"type":45,"marks":3779},"While no one plans on being unable to make loan payments, you should be prepared just in case. Discussing every possibility will give your cosigner transparency upfront and prevent conflict and misunderstanding. ",[3780],{"type":52,"attrs":3781},{"color":54},{"type":104,"attrs":3783,"content":3784},{"level":106,"textAlign":69},[3785],{"text":3786,"type":45,"marks":3787},"Things to Remember During Your Conversation:",[3788,3790],{"type":52,"attrs":3789},{"color":54},{"type":112},{"type":137,"content":3792},[3793],{"type":140,"content":3794},[3795],{"type":41,"attrs":3796,"content":3797},{"textAlign":69},[3798],{"text":3799,"type":45,"marks":3800},"Be honest and upfront with your cosigner",[3801],{"type":52,"attrs":3802},{"color":54},{"type":41,"attrs":3804,"content":3805},{"textAlign":69},[3806,3811,3819],{"text":3807,"type":45,"marks":3808},"Cosigning is an enormous responsibility with potential impacts to your cosigner's credit score. They should be aware of all the ",[3809],{"type":52,"attrs":3810},{"color":54},{"text":3812,"type":45,"marks":3813},"risks and responsibilities",[3814,3816,3818],{"type":66,"attrs":3815},{"href":3693,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":3817},{"color":74},{"type":76},{"text":3820,"type":45,"marks":3821}," associated with cosigning. Do not hide anything from your cosigner or diminish the role they will have in the loan. ",[3822],{"type":52,"attrs":3823},{"color":54},{"type":41,"attrs":3825,"content":3826},{"textAlign":69},[3827],{"text":3828,"type":45,"marks":3829},"Be honest and upfront about your financial situation and reasons for taking out a personal loan. The individual will be much more likely to cosign if they trust you.",[3830],{"type":52,"attrs":3831},{"color":54},{"type":137,"content":3833},[3834],{"type":140,"content":3835},[3836],{"type":41,"attrs":3837,"content":3838},{"textAlign":69},[3839],{"text":3840,"type":45,"marks":3841},"Be willing to negotiate",[3842],{"type":52,"attrs":3843},{"color":54},{"type":41,"attrs":3845,"content":3846},{"textAlign":69},[3847],{"text":3848,"type":45,"marks":3849},"The cosigner is helping you out by taking on this loan. Be willing to negotiate repayment plans and other details. Cosigning places an equal responsibility on you and your cosigner, so the cosigner deserves input. ",[3850],{"type":52,"attrs":3851},{"color":54},{"type":137,"content":3853},[3854],{"type":140,"content":3855},[3856],{"type":41,"attrs":3857,"content":3858},{"textAlign":69},[3859],{"text":3860,"type":45,"marks":3861},"If they say yes, show your gratitude",[3862],{"type":52,"attrs":3863},{"color":54},{"type":41,"attrs":3865,"content":3866},{"textAlign":69},[3867],{"text":3868,"type":45,"marks":3869},"If your cosigner agrees, let them know that you are thankful. Throughout the life of the loan, show the cosigner you are a responsible borrower and follow through on your plan to pay for the loan. This will not only demonstrate your gratitude, but help your credit history as well. ",[3870],{"type":52,"attrs":3871},{"color":54},{"type":137,"content":3873},[3874],{"type":140,"content":3875},[3876],{"type":41,"attrs":3877,"content":3878},{"textAlign":69},[3879],{"text":3880,"type":45,"marks":3881},"If they say no, accept it gracefully ",[3882],{"type":52,"attrs":3883},{"color":54},{"type":41,"attrs":3885,"content":3886},{"textAlign":69},[3887,3892,3900],{"text":3888,"type":45,"marks":3889},"Although you were hoping they would accept, thank the cosigner for their time. They may have reasons for declining, such as planning to take out a personal loan of their own or the impact it would have on their ",[3890],{"type":52,"attrs":3891},{"color":54},{"text":862,"type":45,"marks":3893},[3894,3897,3899],{"type":66,"attrs":3895},{"href":3896,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.investopedia.com/terms/d/dti.asp",{"type":52,"attrs":3898},{"color":74},{"type":76},{"text":531,"type":45,"marks":3901},[3902],{"type":52,"attrs":3903},{"color":54},{"type":41,"attrs":3905,"content":3906},{"textAlign":69},[3907],{"text":3908,"type":45,"marks":3909},"Respect the individual's decision to decline and consider other trusted friends or family who may be willing to help you out.",[3910],{"type":52,"attrs":3911},{"color":54},{"type":104,"attrs":3913,"content":3914},{"level":106,"textAlign":69},[3915],{"text":3916,"type":45,"marks":3917},"Apply for a Personal Loan with a Cosigner",[3918,3920],{"type":52,"attrs":3919},{"color":54},{"type":112},{"type":41,"attrs":3922,"content":3923},{"textAlign":69},[3924,3929,3937],{"text":3925,"type":45,"marks":3926},"Now that you know all about how to find a cosigner, you can take out your personal loan! ",[3927],{"type":52,"attrs":3928},{"color":54},{"text":2618,"type":45,"marks":3930},[3931,3934,3936],{"type":66,"attrs":3932},{"href":3933,"uuid":69,"anchor":69,"target":2591,"linktype":71},"https://www.earnest.com/personal-loans?utm_medium=organic&utm_source=navient_marketplace&utm_campaign=PL_rc_pro_genpop_20260331",{"type":52,"attrs":3935},{"color":74},{"type":76},{"text":3938,"type":45,"marks":3939}," with Navient Marketplace today. ",[3940],{"type":52,"attrs":3941},{"color":54},{"type":41,"attrs":3943,"content":3944},{"textAlign":69},[3945],{"text":607,"type":45,"marks":3946},[3947,3949],{"type":52,"attrs":3948},{"color":54},{"type":48,"attrs":3950},{"class":50},{"type":41,"attrs":3952,"content":3953},{"textAlign":69},[3954],{"text":3955,"type":45,"marks":3956},"Navient customers are invited to consider personal loan offers through our partner MoneyLion. Navient has not shared your information with MoneyLion and is not involved in the personal loan application process in any manner. All information is submitted directly to MoneyLion and any personal loan offers are made directly by participants in MoneyLion’s lending platform. Engine by MoneyLion is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE:ML). Checking your rate will not affect your credit score. Eligibility is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions.",[3957,3959],{"type":52,"attrs":3958},{"color":54},{"type":48,"attrs":3960},{"class":50},{"type":41,"attrs":3962,"content":3963},{"textAlign":69},[3964],{"text":3965,"type":45,"marks":3966}," Loan proceeds may not be used for postsecondary educational expenses, including refinancing federal or private student loans.",[3967,3969],{"type":52,"attrs":3968},{"color":54},{"type":48,"attrs":3970},{"class":50},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"d38fe98a-274f-4440-a601-d08e92fddf31\", \"id\": \"651798171\"}-->","https://www.marketplace.navient.com/blog/how-to-ask-someone-to-cosign-a-personal-loan/","Published: 8/28/2023","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"d91154f9-9ecc-44c5-890b-35a1d510220e\", \"id\": \"651798171\"}-->","how-to-ask-someone-to-cosign-a-personal-loan","navient_marketplace/blog/how-to-ask-someone-to-cosign-a-personal-loan",-460,[],"25f3f66f-35c1-4e02-9eae-9bec91a56cbe","2023-09-26T16:44:37.643Z","blog/how-to-ask-someone-to-cosign-a-personal-loan",[],1775068324,[],[],{"cache-control":3987,"connection":3988,"content-encoding":3989,"content-type":3990,"date":3991,"etag":3992,"per-page":3993,"referrer-policy":3994,"sb-be-version":3995,"server":3996,"total":3997,"transfer-encoding":3998,"vary":3999,"via":4000,"x-amz-cf-id":4001,"x-amz-cf-pop":4002,"x-cache":4003,"x-content-type-options":4004,"x-frame-options":4005,"x-permitted-cross-domain-policies":4006,"x-ratelimit":4007,"x-ratelimit-policy":4008,"x-request-id":4009,"x-runtime":4010,"x-xss-protection":4011},"max-age=0, private, must-revalidate","keep-alive","gzip","application/json; charset=utf-8","Wed, 01 Apr 2026 18:54:00 GMT","W/\"9f82b0e86d37752a88d00b539bd1ddb9\"","9","strict-origin-when-cross-origin","5.706.0","nginx/1.29.1","6","chunked","Origin,Accept-Encoding","1.1 9d195f9d3571763ef1b2316dda6407b6.cloudfront.net (CloudFront)","i6RfD7QkeMoCQvemj1YBDa_JVoMMSmSja8XlOS_pIdxXHtSHUzHodw==","SFO53-P10","RefreshHit from cloudfront","nosniff","SAMEORIGIN","none","\"space-concurrent-requests\";r=29","\"space-concurrent-requests\";q=30","9d599c0b-eafa-424e-9373-5f6793b1a5c0","0.071930","0",9,6,1775069639878]