A new vehicle is a big purchase. If you plan to buy a new or used car with a loan, applying for prequalification helps you set your budget and get an idea of the long-term cost of the purchase.

Prequalification can help you determine whether you might be approved for a loan, and it can give you an estimation of rates you might receive when shopping for a car. Getting prequalified doesn’t mean you’ll automatically be approved for the loan. You’ll still need to fill out a formal loan application for the lender to review.

Benefits of prequalifying for an auto loan

There are many pros to applying for prequalification for an auto loan. Here are some of them.

• Knowing your credit is good enough for a car loan — It would be tough to go pick a new car only to get turned down for an auto loan because of your credit scores or credit reports. Getting prequalified gives you an indication of whether you can get the green light for the loan, though you’ll still need to submit a loan application to find out if you’re approved.
• Having an idea of your budget before you go shopping — Just like getting turned down for a loan, picking your dream car only to find out you can’t afford it can be a major disappointment. When you have an idea of what you can borrow, you can focus on cars you can afford.
• Skipping dealership financing — Once you choose a car and negotiate a price, you don’t need loan approval from the dealership, which may cost more than going directly to a lender yourself.

What information you’ll need to apply for prequalification

Getting prequalified for a loan is similar to getting approved for a loan. Lenders typically require your personal information and a soft credit inquiry.

For personal information, lenders will usually want to verify the following:

• Income
• Employment information
• Identity
• Current debt obligations

It’ll probably also be handy to have your Social Security number, driver’s license, proof of income and housing payments.

To check your credit, the lender may use a soft inquiry or a hard inquiry to pull your credit reports and scores. A soft inquiry doesn’t affect your credit scores, while a hard inquiry may have a small impact on your credit scores. If you’re shopping around for the best rate, check if you’re dealing with a soft or hard inquiry first.

Next steps

If you’re ready to start the prequalification process, first you’ll need to decide the best type of auto lender for you. Then, you’ll want to make sure to comparison shop across different lenders to find the best rate you can. Make sure you come prepared with all the information you’ll need, along with the type of car you’re looking at and the budget you’re aiming for.

Updated March 21, 2024

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Eric Rosenberg

Pros

• Welcome bonus
• Free annual night after card anniversary
• Complimentary Bonvoy Gold Elite status at Marriott properties

Cons

• Annual fee of $125
• Big spending requirement to earn second free night

Most important features

Here’s what you need to know about the Marriott Bonvoy Business® American Express® Card.

Annual fee vs. rewards rate

The Marriott Bonvoy Business® American Express® Card has a $125 annual fee. Is it worth it? It depends how much you spend and on what.

The card offers the following rewards rates on eligible purchases:

• 6 points per $1 spent at hotels participating in the Marriott Bonvoy program
• 4 points per $1 spent at restaurants, U.S. gas stations, on wireless telephone services purchased directly from U.S. wireless service providers, and on U.S. purchases for shipping
• 2 points per $1 spent on all other eligible purchases

According to Credit Karma’s point valuation estimate, one Marriott Bonvoy point is worth about 0.75 cents. That means you’d need to spend at least $2,289 on stays or purchases at Marriott Bonvoy properties per year to offset the cost of the annual fee. Broken out over a whole year, that’s pretty doable for someone who stays at Marriott frequently — it breaks down to about $190 per month spent on qualifying Marriott hotel stays. Anything you put on the card after that is just gravy in terms of points.

Now if you don’t have any spending at all in the bonus categories, you’d have to spend about $6,868 over the course of the year to match the annual fee.

Earning free nights

Every year after your renewal month, you’ll earn a free-night credit that can be worth up to 35,000 points at any eligible Marriott property. Marriott operates more than 7,000 hotels, so there’s bound to be one that you can take advantage of. You can get a second night free if you spend a hefty $60,000 or more on eligible purchases on the card in a calendar year.

Beyond that, when you redeem points for five consecutive nights, Marriott will offer the fifth night on the same booking for free.

Marriott Elite status

All cardholders get instant Gold Elite status in the Bonvoy program. Gold status includes room upgrades and priority late checkout where available, plus a 25% point bonus with each stay.

Welcome bonus

The Marriott Bonvoy Business® American Express® Card offers a welcome bonus: You can earn three Free Night Awards (with a redemption value of up to 50,000 points each) if you spend $6,000 on purchases within 6 months from account opening.

Other Marriott business card features

Here are some other features of the Marriott Bonvoy Business® American Express® Card to consider.

• No foreign transaction fees — You won’t pay any foreign transaction fees at merchants that accept American Express.
• Free, premium internet — Book your stay with this card, and you’ll qualify for premium in-room internet when staying at participating Marriott hotels.
• Elite night credits — This card includes 15 nights of credit each calendar year toward the next tier of Marriott Bonvoy elite status before your head ever touches the pillow. Those extra nights can be put toward gaining Platinum Elite status, which requires staying 50 nights per year at a Marriott property.

Understanding your points and redemption options

The unified Marriott Bonvoy rewards program combines the old Marriott, Starwood (known as SPG) and Ritz-Carlton programs. The Marriott Bonvoy program covers this entire massive portfolio of hotels.

Redeeming rewards from your card is easy — just make a reservation online and choose to apply points during the reservation process. If you get stuck, you can call the Marriott reservation desk for a little extra help.

Sometimes you can stretch points a little further using points with cash to book or PointSavers awards. Cash + Points lets you mix the two to save points when making a reservation.

Who this card is good for

This card is best for business owners who will stay in Marriott hotels at least once a year. Really, the annual free-night benefit could easily be worth more than $125 per year. When you book, you might beat the cost of the card’s $125 annual fee before considering points and other benefits. Any rewards and perks you tap into above that is value added back into your pocket.

Not sure this is the card for you? Consider these alternatives.

• The Business Platinum Card® from American Express: This premium card is worth considering if you want a luxurious travel experience and think it’s worth the cost.
• Ink Business Preferred® Credit Card: This card is great if you’re an avid business traveler.
• The American Express Blue Business Cash™ Card: If you want to avoid an annual fee and prefer cash back rewards, consider this card.

Pros

• Approved loans may be funded by the next business day
• No minimum FICO score required

Cons

• Only small loans available
• APR range is high
• Not a direct lender

What you need to know about a RadiantCash personal loan

RadiantCash is an online platform that connects people with high-interest installment lenders targeted toward people with bad credit. You can apply ffrom RadiantCash online and, if approved by a lender, may have the funds deposited right into your bank account by the next business day.

Tribal lender

RadiantCash is a tribal lender regulated by the Lac Du Flambeau band of Lake Superior Chippewa Indians.

High interest rates

Although loans offered through RadiantCash’s platform may have low credit requirements, you can expect an extremely high interest rate. The annual percentage rate for loans from RadiantCash’s network can range into the triple digits. The RadiantCash website states that these loans aren’t intended for long-term use, so keep that in mind when deciding if one of these very-high-cost loans is right for you.

Fast decision and funding

After completing an online application, if you’re approved for a loan, you may be able to access your loan funds the next business day. But keep in mind the exact timing depends on your bank.

A closer look at RadiantCash personal loans

• Borrow up to $2,500 — When applying through RadiantCash.com, you can borrow up to $2,500.
• Late fees — If you miss a due date, you may pay a late fee depending on the lender.

Who a RadiantCash installment loan is good for

RadiantCash installment loans could be an option for people with bad credit and a short-term need for $2,500 or less. While installment loans from RadiantCash are not considered payday loans, the interest rates charged are similar to the very high borrowing costs you’d see from the payday loan industry.

If you have a spotty credit history and are in a financial jam that could be solved by quick cash, RadiantCash loans might be an option for you. But avoid getting a loan for more than you need.

If you do get a loan through RadiantCash, you should pay it off as quickly as possible. Though the interest rates are so high on this type of loan that so you’re better off avoiding it altogether if you can.

How to apply with Radiant Cash

Applying for a loan with RadiantCash is simple. Start by going to the RadiantCash website and filling out a short form. You’ll need to provide some personal info including your driver’s license information, Social Security number, and bank account and employment information.

If you’re matched with a lender and accept your offer, you may be able to receive your funds in as soon as one business day.

Not sure if RadiantCash is right for you? Consider this alternative.

• Avant: If you want a larger loan amount, longer payback period and lower interest rate, Avant could be a better choice for your needs.

Pros

• People with bad credit may be approved
• Potentially fast funding
• Small loan amounts available

Cons

• High interest rates
• Payday loans don’t help you build credit
• Not available in all states

What you need to know about Advance America loans

Advance America is a large lender that offers online loans and in-person lending at more than 1,400 physical locations. It offers payday loans, installment loans, title loans and personal lines of credit to people with less-than-perfect credit.

Payday loan amounts can start at as little as $100, but both the minimum and maximum loan amounts can vary by state.

High interest rates

Interest rates at Advance America can be very high. Rates vary by loan type and state, but still often exceed triple digits. For example, payday loans in California come with fees that equate to an annual percentage rate, or APR, of around 460%.

Interest rates for installment loans can be a bit lower, but some still have APRs higher than 200%. 

Short loan terms

Advance America’s payday loans are short-term loans due on your next payday, typically within two to four weeks. Extending these loans for a longer period can be very expensive.

Installment loans from Advance America have longer terms available, which vary depending on where you live and how much you’re borrowing.

Good credit may not be needed

You may qualify for an Advance America loan even if you don’t have good credit. The company’s payday loans, also called cash advances, require a government ID, Social Security number, proof of income and an active checking account to apply, and may require a credit check. Installment loans do require a credit check, though.

A closer look at Advance America loans

Advance America says it has issued 134 million loans over 22 years. Here’s a closer look at some other important features of Advance America.

• Many physical locations: Advance America has 1,400 locations across the U.S.
• Not available in all states: Payday loans are illegal in some states. Depending on your local laws, Advance America may not operate where you live.
• Potentially fast access to cash: If you take out a payday loan at a physical location, you may be able to leave with cash in your hand. Online applications made by 10:30 a.m. EST on weekdays may be funded to your bank account the same day. Advance America says approval decisions are made in minutes.
• Rollovers may be available: Depending on your state, you may be able to renew your payday loan and extend it for a number of months. While this may seem like a benefit, the fees and interest can be incredibly costly.

Who an Advance America loan is good for

If you can avoid a loan that charges an APR in the triple digits, you should. Payday loans are expensive and should be used only as a last resort when you need cash and don’t have other options.

The Consumer Financial Protection Bureau warns that payday loans can often become debt traps, with people taking on new debt to pay off the old debt.

But it’s not always realistic to forgo payday loans. If you decide to apply for a high-interest loan from Advance America, it’s important to be aware of the potential costs over time and create a budget to ensure that you can repay the loan.

How to apply with Advance America

Applying for a loan from Advance America is fast and easy. The in-store and online application processes are very similar.

Here’s what you’ll need to provide to apply for a payday loan or installment loan from Advance America. If you’re applying for an installment loan, you may need to provide more information.

• Government ID
• Proof of income
• Checking account
• Social Security number
• Personal check (for in-store applications)
• Valid email address (for online applications)

To apply in person, bring the required information to an Advance America location near you. For an online application, you can enter the info on the Advance America website.

Not sure if Advance America is right for you? Consider these alternatives.

Payday loans aren’t for everyone. If you’re struggling financially and looking to borrow, here are some other options you might want to consider.

• Earnin: Earnin is an alternative option for emergency cash. It’s an app that allows you to borrow against your paycheck without fees or interest.
• Upstart: Upstart might be ideal if you want a lender with a prequalification option that considers more than just your credit scores.
• Payday alternative loans: Federal credit union members can consider these emergency cash options, which have limits on fees.

Whether it’s for a new credit card, an auto loan or a second date, rejection stings. But unlike dating app users, lenders can’t mysteriously ghost you if your credit is what led to your rejection.

There are many reasons a company may look at your credit. Learn more about why adverse action notices are sent, what’s contained in a notice, how to dispute inaccuracies and how you can use one to try to improve your credit for the future.

• What is an adverse action notice?
• What will you find in an adverse action notice?
• How do you respond to an adverse action notice?

What is an adverse action notice?

If a lender or company denies you for credit because of information in your credit reports, it must give you an explanation for the denial. This is known as an adverse action notice.

The Fair Credit Reporting Act and the Equal Credit Opportunity Act require issuers to send adverse action notices in the following situations.

• They deny your credit application or revokes your credit
• They refuse to give you credit for the amount or terms you requested
• They negatively change your account terms after reviewing your credit reports

If an issuer rejects your credit application based on information in your credit reports you will typically receive an adverse action notice in the mail. Learn more about the information on your credit reports and how to read it.

If you’re applying for a job, the employer must provide you written notice that the information may be used in making decisions about your employment and receive your written permission. If the company is considering not hiring you because of the information it received, it must give you a copy of the info it relied on and a special summary of your rights under Fair Credit Reporting Act. The notice you receive will contain different information than the adverse action notice you receive when denied credit, but both notices aim to inform you about the information relied on to make the decision and your rights moving forward.

This gives you a chance to dispute the information. If you’re rejected because of the background check, you’ll receive an adverse action notice that is slightly different from the one that you’d receive if you were denied credit.

The information you find in an adverse action notice can give you more insight to help you improve your credit.

How do companies use my credit when making a lending decision?

Lenders typically use information in your credit reports to help decide if you’re a high-risk or low-risk borrower. Your credit may lead to an approval or denial and can influence the interest rate and other terms of your loan.

What will you find in an adverse action notice?

The following items must be included if you get an adverse action notice related to a credit decision.

• The name, address and phone number of the credit bureau that gave the company your credit report
• A statement that the credit bureau didn’t make the adverse decision and can’t explain why the decision was made
• A notice that you have 60 days to request a free copy of your credit report from the credit bureau
• A notice that you can dispute the accuracy or completeness of any of the information provided by the credit bureau
• Your credit score, if it was used to make the decision

This information is meant to help you better understand your rights and who to contact if it’s incorrect. You can also file a complaint with the Consumer Financial Protection Bureau if you believe you were wrongly denied credit.

How do you respond to an adverse action notice?

If you get an adverse action notice, you don’t have to respond in any way. But if you disagree with the action and want to dispute or appeal the decision, you may have an opportunity to do so.

Remember that you can request a free copy of your credit reports from each of the three major credit reporting agencies annually through annualcreditreport.com.

If you were turned down because of incomplete or inaccurate information on your credit reports, you can dispute the information with the credit bureaus. If you file a dispute with the credit bureaus, they’re required to investigate the dispute unless it’s determined to be “frivolous.”

What’s next?

No one wants to get an adverse action notice — but if you do, you can use that information to try to improve your credit going forward or fix any mistakes on your credit reports. The requirement for adverse action notices is an important protection that can help you better understand your credit.

Updated October 22, 2021

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Eric Rosenberg

Pros

• Works with people who are trying to rebuild their credit
• No fee for submitting a loan request
• You can shop for a new or used car and apply for financing on one platform

Cons

• Does not issue loans directly
• You may need a 10% down payment

What you need to know about CarsDirect

If you plan on financing a new or used car, it’s important to shop around for both the right car and the right loan. CarsDirect can help you do both.

Shop multiple lenders at once

CarsDirect is not a lender — it’s a search hub that helps you find loans from lenders it partners with. The site’s tools let you compare multiple auto loan options.

CarsDirect says its customers usually are able to purchase their vehicles within 24 to 48 hours after completing the application process with a lender.

Find a vehicle and a loan at the same time

CarsDirect doesn’t just connect you with car loans. You can search for new and used cars and your loan on the same platform. That can make the purchasing experience smoother because it takes what can be a multiple-step process and condenses it into one process on one site.

Apply for a loan if you have bad credit

If you’ve filed for bankruptcy or have string of late payments on your credit reports, getting approved for a loan may not be easy. CarsDirect can help connect you with lenders that will take your financial circumstances into consideration.

Just remember, if you have bad credit, you’re more likely to pay a higher interest rate on your loan. The lender you’re paired with may require a 10% down payment on the auto loan depending on your credit.

A closer look at CarsDirect

If you’re thinking about applying for a loan through CarsDirect, here are some other details you should know.

• No application fee: CarsDirect does not charge an application fee for submitting an auto loan request. However, the lender or dealer may charge fees, so be on the lookout for all potential charges throughout the car buying process.
• Hard credit inquiry: Once you submit your loan application, matched lenders may perform a hard inquiry to pull your credit reports, which can push your credit scores down slightly.
• Co-signers allowed: If you want to apply with another person or get a co-signer to help boost your approval odds or improve your terms, CarsDirect will let you.
• Refinancing referral: If you’d like to refinance your current auto loan, CarsDirect can connect you with rateGenius, which says it can help customers save money by refinancing.

Is CarsDirect right for you?

CarsDirect primarily markets to borrowers with less-than-stellar credit. If you have good credit, you may find a better deal going through your bank, local credit union or other online lender.

CarsDirect, which doesn’t charge you an application fee, helps you compare the best deals. That will help you understand if you’re getting a competitive rate.

If you apply, you’ll also want to be comfortable with multiple lenders contacting you to vie for your business.

How to apply for a loan from CarsDirect

The loan application process starts at CarsDirect.com. After you submit the application form, a dealer partner will get back to you within 24 hours to discuss financing options.

Before you apply for an auto loan with CarsDirect, it’s a good idea to check your credit and compare other loan offers. Understanding your credit can help set expectations — in general, lower credit scores will result in higher interest rates. And shopping around can help you find the best loan rate and terms for your needs. Read our article on how to get a car loan to learn more about the process.

Auto loan alternatives to consider

If you want to explore other lending options, here are a couple to consider.

• Capital One Auto: Capital One may be a good option if you’re interested in first applying for prequalification to see your estimated terms.
• Carvana: If you’d like to buy a used car online, Carvana might be worth checking out.

Buying a car can be exciting, but before you go shopping you should take some steps to get your finances in order to find the right loan and vehicle for your budget.

A new vehicle is a big purchase. If you plan to buy a new or used car with a loan, applying for prequalification helps you set your budget and get an idea of the long-term cost of the purchase.

• What is prequalification?
• Benefits of prequalifying for an auto loan
• Is there a difference between prequalification and preapproval?
• What information you’ll need to apply for prequalification
• What to watch out for with loan prequalification

What is prequalification?

Prequalification can help you determine whether you might be approved for a loan, and it can give you an estimation of rates you might receive when shopping for a car. Getting prequalified doesn’t mean you’ll automatically be approved for the loan. You’ll still need to fill out a formal loan application for the lender to review.

If you want or need a new vehicle and can’t afford to buy it with cash, you may need to finance it with a loan. Prequalification can give you a better idea of what your likelihood of being approved — and your estimated loan terms — would be once you do submit the final loan application.

Getting prequalified can also mean working with a lender. If you work with a loan officer, this can help you begin a relationship — something that can make the entire purchase process smoother once you find your new ride.

But you don’t need to tie yourself down to one lender for prequalification. It’s usually smart to compare interest rates and see what loan terms different lenders are willing to offer you to help you get the best deal.

Benefits of prequalifying for an auto loan

There are many pros to applying for prequalification for an auto loan. Here are some of them.

• Knowing your credit is good enough for a car loan — It would be tough to go pick a new car only to get turned down for an auto loan because of your credit scores or credit reports. Getting prequalified gives you an indication of whether you can get the green light for the loan, though you’ll still need to submit a loan application to find out if you’re approved.
• Having an idea of your budget before you go shopping — Just like getting turned down for a loan, picking your dream car only to find out you can’t afford it can be a major disappointment. When you have an idea of what you can borrow, you can focus on cars you can afford.
• Skipping dealership financing — Once you choose a car and negotiate a price, you don’t need loan approval from the dealership, which may cost more than going directly to a lender yourself. And if you decide to apply with the lender and are approved, the dealer may even contact your lender on your behalf to make final arrangements, leaving one less thing for you to do.

Is there a difference between prequalification and preapproval?

Both prequalification and preapproval can give you an idea of estimated loan terms and if you might be approved for a loan from the lender. In practice, prequalification typically means the lender will use a soft credit inquiry, while preapproval often indicates a hard inquiry. You should check how the lender uses the term to find out what it means for you. Learn more about the difference between preapproved vs. prequalified.

What information you’ll need to apply for prequalification

Getting prequalified for a loan is similar to getting approved for a loan. Lenders typically require your personal information and a soft credit inquiry.

For personal information, lenders will usually want to verify the following:

• Income
• Employment information
• Identity
• Current debt obligations

It’ll probably also be handy to have your Social Security number, driver’s license, proof of income and housing payments.

To check your credit, the lender may use a soft inquiry or a hard inquiry to pull your credit reports and scores. A soft inquiry doesn’t affect your credit scores, while a hard inquiry may have a small impact on your credit scores. So if you’re shopping around for the best rate, check if you’re dealing with a soft or hard inquiry first.

And remember, multiple inquiries made within a 14- to 45-day window often count as only one inquiry, depending on the credit-scoring model, so you can try to get a better rate while minimizing the effect on your credit scores.

What to watch out for with loan prequalification

Keep in mind that a prequalification isn’t a guarantee that you’ll be approved for a loan. You still have to get final approval from the lender.

Keep your eyes on the loan terms before you sign your loan agreement, including these important figures.

• Loan amount — How much you can borrow
• Interest rate and annual percentage rate — How much you pay to finance the loan (not including the cost of the vehicle itself)
• Loan term — How many months you’ll have to pay back the loan
• Monthly payment — The minimum payment each month over the life of the loan

Next steps

If you can afford to buy a car outright with cash, not only will you save money on interest and loan fees, but you can also skip the entire prequalification process. But if you do want to buy a car with a loan, applying for prequalification can make the buying process smoother, and it can help you avoid unpleasant surprises along the way.

If you’re ready to start the prequalification process, first you’ll need to decide the best type of auto lender for you. Then, you’ll want to make sure to comparison shop across different lenders to find the best rate you can. Make sure you come prepared with all the information you’ll need, along with the type of car you’re looking at and the budget you’re aiming for.

One common leasing charge you may come across is an acquisition fee. Also referred to as an administrative fee or assignment fee, this charge covers the leasing company’s administrative costs, like pulling your credit reports and verifying your insurance coverage.

If you decide to lease a new vehicle, review your lease terms carefully to see how much your leasing company charges for the acquisition fee.

A lease-acquisition fee typically won’t be the only fee you face, but it can add a significant amount of money to your overall leasing cost. But if you go into the leasing process educated and well-prepared, you may be able to negotiate a discount on this fee.

• How much is a lease-acquisition fee?
• Where can I find the lease acquisition fee?
• Can I negotiate a lease acquisition fee?
• Next steps: Decide if leasing a vehicle is a good idea

How much is a lease-acquisition fee?

When you lease a car, the financing company can charge a fee to put the deal together. So like a bank may charge an origination fee on a loan, a leasing company may charge an acquisition fee for a new lease.

The fee usually ranges from $395 to $895, according to car-buying resource site Edmunds.com. More-expensive cars may come with a higher fee.

You might be able to pay the lease-acquisition fee upfront or bundle it into your monthly lease payments. Be aware that if the fee is hidden in what’s known as your “gross capitalized cost,” your monthly payment may be higher than if its paid upfront. When hunting for your next lease deal, plan ahead for this and other potential fees.

What are some common upfront costs when leasing a vehicle?

In addition to an acquisition fee, you might see charges for the first and last month’s payments, license, registration and title fees, freight charges, taxes and a refundable security deposit.

Where can I find the lease-acquisition fee?

The lease agreement, which is a legal contract, contains important details you need and should include the acquisition fee.

The leasing company, also known as a lessor, is required by federal law to provide written disclosures of certain costs and terms if the lease is more than four months long and meets other requirements. Be sure to read the fine print before you sign, and take the time to understand this information so that you aren’t surprised by any of these costs.

Can I negotiate a lease-acquisition fee?

If you plan to lease a car, get ready to negotiate. You can negotiate different parts of your lease, including trade-in value, vehicle value, interest rate and length of the loan, along with other fees and charges associated with the loan. This can vary from lender to lender as to whether it’s negotiable.

Whether or not you have success negotiating this fee, you shouldn’t stop there when trying to negotiate. In terms of how strongly you negotiate, treat a lease as if you’re buying a new car. Even though you don’t actually buy the car if you are only leasing it with no option to purchase, the value of the vehicle is still taken into account in a lease, as is the depreciation.

Make sure the capitalized cost (the vehicle cost) matches the best deal you can get. If your lease shows a lease-acquisition fee, you may either consider directly negotiating it or negotiate another fee in a similar amount to offset it if it’s not directly negotiable.

Next steps: Decide if leasing a vehicle is a good idea

Just like buying a car, leasing is a major financial transaction. The financial aspects of leasing a car work differently than when you buy one. A lease can come with lower monthly payments and usually has shorter terms than a typical car loan. But when the lease is up, you have to give the car back or buy out the lease, depending on the terms of your lease. Once an auto loan is paid off, or if you buy a car outright, you have the title and full ownership of the vehicle.

Consider the lease-acquisition fee, among other costs, when reviewing your lease agreement. If you play your cards right, you may even be able to save money by negotiating a lower lease-acquisition fee.

Even if you can’t get a dealer to lower its lease-acquisition fee, you can still negotiate other leasing costs, which could help offset that fee. Don’t blindly agree to pay all of the lease fees and charges when signing a contract. With the right focus on negotiating costs, as well as understanding all of the fees involved, you could save money on your next car lease and ensure you get the best deal for your situation.

This offer is no longer available on our site: Chase Sapphire Reserve®

Updated March 20, 2024

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Eric Rosenberg

Pros

• 2% value for airfare redemptions
• Luxury concierge and booking services
• No blackout dates for travel redemptions

Cons

• Annual fee of $195; $95 for each additional user
• Reward rates are low compared with other premium cards
• Reward points only redeemable through the card’s travel booking portal

What you need to know about the Mastercard® Titanium Card™

The Mastercard® Titanium Card™, like its high-end siblings Mastercard® Black Card™ and Mastercard® Gold Card™, is made of metal (stainless steel, in this case) and built to impress cashiers anywhere you use it. But the perks and rewards program don’t live up to the value promised by its annual fee of $195; $95 for each additional user.

A lackluster rewards program

The Mastercard® Titanium Card™ promises a 2% airfare redemption rate, which would give it a high point valuation compared to other rewards programs. Unfortunately, this rate doesn’t give an especially clear sense of the rewards value you get for your spending.

For one thing, it will take a lot of spending to earn your points, because each $1 you spend on purchases with the Mastercard® Titanium Card™ earns just one point. Although that’s a common rate for the “all other purchases” categories of other rewards cards, those cards often feature bonus categories or a two-points-per-dollar rate for all purchases that can help you build up points more quickly. Also, you can’t earn fractions of points, so a $49.50 purchase would be rounded up to 50 points and a $49.49 purchase would be rounded down to 49.

In practice, then, the Mastercard® Titanium Card™ will give you 2 cents of rewards value for every $1 you spend on purchases only if you redeem your points for airfare. If you redeem your points for cash back or other travel expenses like hotel stays or car rentals, you get a standard value of 1 cent per point.

Compare these rates to a no-frills cash back card like the Citi Double Cash® Card, which offers 2% cash back on every purchase you make (1% when you use the card and 1% when you pay your bill). You could likely get more value from the Citi Double Cash® Card, and it doesn’t charge an annual fee.

Restrictions on your redemptions

While that 2% rate on airfare sounds like a good deal, there are restrictions on what you can book to get it.

All flight redemptions must be made through the Luxury Card portal, which gives you access to a similar range of flights you’d see using any major travel search engine. That means you can book travel with no blackout dates or other restrictions common to airline and hotel reward programs.

But you can use your rewards points only for airfare through this portal. You can’t transfer to any partner airlines or hotels to redeem through their programs, and you can’t make a travel purchase elsewhere and then apply your points as a statement credit to cover that expense.

You get access to luxury, but it will cost you

Although rewards might stand out on other cards, it’s the many benefits you can access via the Luxury Card concierge that make up the core feature of the Mastercard® Titanium Card™. The concierge offers many services, including booking flights and hotels to arranging a flower delivery to a loved one.

Just keep in mind that most of these services aren’t complimentary and some may lead to additional charges. Although you won’t pay anything for the concierge specifically, you will pay for a chartered yacht or the stay at your favorite hotel.

In other words, the card could get you smoother access to luxury services, but it won’t always cover the cost of the service itself. You can get similar concierge service from other cards.

What’s missing?

The Mastercard® Titanium Card™ lacks some key perks and benefits we’ve come to expect from a card with an annual fee of $195; $95 for each additional user.

For instance, numerous travel cards offer a Global Entry or TSA PreCheck application fee credit of up to $100 every four or five years. It doesn’t have to be a fancy card, either — Capital One Venture Rewards Credit Card includes this perk with a $95 annual fee.

Given the low rewards rates, we would expect some additional higher-level benefit for an annual fee of $195; $95 for each additional user. That could be a membership to an airport lounge, or even an incidental fee credit with an airline of your choice. In short, we think there should be something in the rewards program or list of perks to help offset the cost of the annual fee.

Who this card is good for

The Mastercard® Titanium Card™ is best for people who want the look of luxury and don’t mind paying for it. Clearly, private jets, chauffeurs and airport guides are not for everyone. But if you want easy access to those services with a quick call to one phone number, the Mastercard® Titanium Card™ has you covered.

If your biggest concern is getting rewards value, though, you’d probably be better off with another card. Based on our calculations, you’d have to spend $9,750 and redeem all of your points for airfare to break even on the annual fee. This card catches the eye and advertises some flashy perks, but you might not get enough value to justify the cost.

Not sure this card is for you? Consider these alternatives.

If you want a card that offers a combination of strong rewards and perks, consider these options.

• Chase Sapphire Reserve®: Luxury travelers who want premium experiences and valuable rewards could benefit from this card.
• American Express® Gold Card: This card offers an attractive metal design with extra value for dining out.
• Capital One Venture Rewards Credit Card: This option isn’t flashy, but it could be right for those who want a simple and straightforward rewards card experience.

Wells Fargo Rewards® Card is no longer available. For other options, check out more rewards credit cards.

What you should know about the Wells Fargo Rewards® Card

These key features are important to consider before you apply for the Wells Fargo Rewards® Card.

Low base-rewards rate

The Wells Fargo Rewards® Card offers five points for each $1 spent on purchases at gas stations, grocery stores and drugstores, and one point on all other purchases. The five points in select categories is a nice boost, but it lasts for only the first six months from the date your account is opened — and you’ll earn five points only at gas stations, grocery stores and drugstores on up to $12,500 in purchases (or 50,000 points). And after the six months are up, you’ll earn only a low, flat rate of one point for each $1 spent on all purchases.

Intro 0% APR on purchases and balance transfers for 15 months

If you’re looking to consolidate and pay down credit card debt, the Wells Fargo Rewards® Card’s intro APR for both purchases and balance transfers can save you money on interest for big purchases, and help you make progress on paying off your debt for good.

The Wells Fargo Rewards® Card offers an intro 0% APR on purchases and balance transfers for 15 months from account opening. After that, you’ll be charged variable APRs of 12.49% to 25.49% for purchases and balance transfers, based on your creditworthiness. But be aware: Balance transfers must be requested within 120 days of your account opening to qualify for the intro balance transfer APR offer, and they’ll carry an intro balance transfer fee of 3% (minimum $5) for the first 120 days from account opening. After 120 days, you’ll have to pay a fee of 5% for each transfer (minimum $5).

The 15-month intro APR on purchases and balance transfers makes the Wells Fargo Rewards® Card a solid option, but there are better balance transfer offers out there. If a low-interest card is your primary goal, make sure to shop around to see if there are any cards with a longer intro 0% APR timeframe that may be a better fit for you. Compare balance transfer offers on Credit Karma to learn more.

Not great for international trips

The Wells Fargo Rewards® Card is a Visa credit card, which makes it easy to use around the world. Just beware of the 3% foreign transaction fee, which is charged each time you make a purchase outside of the U.S. If this is a deal breaker for you, there are plenty of other travel cards that don’t charge a foreign transaction fee.

But if you’re traveling domestically and need to rent a vehicle, the Wells Fargo Rewards® Card could be a good card to use. If you pay for an eligible car rental with this card, it offers a rental car collision damage waiver. You can use it for roadside dispatch, travel-accident insurance and travel-emergency assistance, too.

Cellphone protection

If you use the Wells Fargo Rewards® Card to pay your monthly cellphone bill, the bank will reimburse you up to $600 — which is subject to a $25 deductible — if your phone is damaged or stolen. Although this is a nice perk, you must meet certain requirements in order to gain this benefit, so make sure to read your credit card’s fine print to learn more.

Who this card is good for

If you’re a dedicated Wells Fargo customer looking to keep all of your finances with one bank, the Wells Fargo Rewards® Card could be a good fit for you. The card could also be appealing if you’re hunting for a competitive intro APR period for balance transfers.

But if you’re looking for a great cash back or travel rewards card, you should look elsewhere. You can find cards that offer more competitive rewards rates on many bonus-category purchases.

If you need funds to help consolidate debt, pay an outstanding bill or finance a large purchase, a personal loan might make sense for you. Personal loan apps can give you an opportunity to borrow money with an online application. Remember, though — approval is not guaranteed and is based on a number of factors, like creditworthiness.

You might find applying for or managing a loan through a personal loan app to be a great way to go — as long as you choose a loan that you can afford to comfortably repay, of course.

• What is a personal loan app?
• How do personal loan apps work?
• Should I use a mobile app for a personal loan?
• Personal loan tips

What is a personal loan app?

A personal loan is typically unsecured and can come from a bank, credit union or other lender. Thanks to the popularization of online banking and money management tools, a group of financial companies has emerged with a focus on online lending.

Many of these lenders offer loans through mobile loan apps, which are available from the Google Play store for Android phones and the App Store for iOS devices. In some cases, you can apply for and help manage the loan within the mobile app. But for some other lenders, you may need to access the lender’s website on a computer to apply.

The app to apply is typically associated with an online lender, traditional bank or credit union, and these apps can have certain restrictions. For example, if the lender doesn’t offer loans in your state you won’t be able to apply just because they have an app.

With a personal loan, you’ll have an installment loan — a loan with fixed monthly payments until the debt is paid off — if you’re approved.

While many lenders do allow you to view or manage existing loans and payments through a mobile app — and some let you apply through their mobile sites — few lenders offer the ability to apply through a downloadable mobile app.

See our picks for the best apps that loan money.

How do personal loan apps work?

While sending an application through a mobile app may feel less formal than applying through a traditional bank, it’s essentially the same process. You’ll need to indicate how much you’d like to borrow and provide identifying information to apply. Pay close attention to loan terms like interest rates and fees, including any prepayment penalty for paying off your loan early.

To get started, you’ll need to download the lender’s app for your phone. Once installed, you typically have to create an account before you can begin your application.

Some of the required details to include in your loan application generally include your name, contact information, Social Security number, annual income and your desired loan amount.

Your credit scores are one of many factors that can affect the interest rate you’ll get for most loans. Strong credit scores typically indicate a lower risk and that you’re likely to repay the loan. Lenders are generally willing to offer a lower interest rate to those with healthy credit.

If approved, some lenders will directly deposit the funds into your bank account — within a few business days, in some cases. 

Should I use a mobile app for a personal loan?

If you can apply online or with a mobile app, you may find a faster and easier experience than filling out a traditional application with a paper and pen, particularly if you’re comfortable with computers and handling your finances online.

But keep in mind that while some lenders offer the entire lending experience through a mobile app, many banks and online lenders still don’t let you handle your entire loan from a mobile app. If you download the mobile app and can’t apply there, just head to the website to apply using your computer.

Be sure the mobile app is not a payday loan, unless this is the type of loan you are certain you want. These loans typically charge very high interest rates compared to traditional personal loans.

Personal loan tips

As with any kind of loan, make sure you really need that personal loan before you apply through an app. Even if money is tight, a loan with high interest and fees could leave you in a worse financial situation than where you started.

If you’re interested in taking out a personal loan, don’t skip shopping around to make sure you get the best interest rates possible for you based on your credit. Interest is the percentage of the principal that a lender charges you to borrow the money. For example, if you borrow $5,000 with a 12% interest rate, you would pay $50 in interest alone the first month. And remember, the annual percentage rate, or APR, is the cost you pay each year to borrow money, including fees.

Other potential costs to watch out for: origination fees, prepayment penalties, late payment fees and returned payment fees.

Bottom line

Applying for a personal loan with a smartphone could be faster and easier than applying through a traditional online application. But don’t get so caught up in the speed and easy access that you skip shopping around and carefully considering all loan terms.

And don’t limit yourself to just mobile apps when loan shopping. You may find better terms from a lender with a web-based or even more traditional application process.

Unemployment can hit your finances hard and a personal loan may look like an attractive option to help you stay afloat.

Loans for the unemployed are possible, but you’ll likely have to prove that you have an alternative source of income — and the lender may take a closer look at your credit profile.

Here are some things to know about applying for a loan if you’re unemployed, along with some info and alternatives to consider before you apply.

• Factors lenders may use to evaluate your loan application
• Risks of borrowing while unemployed
• Alternatives to personal loans

Factors lenders may use to evaluate your loan application

Lenders look at multiple factors when evaluating a new loan application. Ultimately, they’re trying to figure out how likely you are to repay your loan.

Income

Income is usually a big consideration in the world of lending, which is why being unemployed can make getting a personal loan more challenging. But if you have income sources outside of a traditional job, you still might have a chance to qualify. Here are some common examples of alternative income.

• Spouse’s income: If you’re married and the lender allows it, you may be able to include your spouse’s income on your loan application. This may be allowed if you can use that income to help repay the loan. You may need to include your spouse as a co-applicant if you choose to include their income as a source of income.
• Investments: Capital gains or money from investments like real estate could help indicate your ability to repay your loan. One-time capital gains might not be considered, but recurring income from dividends or rental properties may be allowed if the lender approves.
• Retirement benefits: Social Security benefits or regular 401(k) withdrawals may qualify if you’re retired.
• Other payments: Unemployment, alimony and child support may be accepted as other predictable sources of income.

But heads up: The Equal Credit Opportunity Act prevents lenders from requiring you to disclose certain types of income, including types of public assistance, alimony and child support.

Debt-to-income ratio

Another factor that lenders may consider in determining whether you have the ability to repay a loan is your debt-to-income ratio. This is calculated by dividing your total monthly debt payments by your gross monthly income. Your gross income is generally your income before payroll deductions like taxes and insurance.

If your debt-to-income ratio is too high, a lender may use this as an indication that you may not have enough income to pay both your debts and day-to-day expenses.

Credit history

Your credit is also key for lenders in evaluating whether to give you an unsecured personal loan. Lenders will almost surely take a look at your credit scores and could also consider payment history and other information on your credit reports, like past bankruptcies or accounts in collection.

The federal Fair Credit Reporting Act requires consumer reporting agencies maintain fair and accurate information in your file that lenders may consider. While strong credit may not make up entirely for a lack of income, it can weigh on the positive side when you’re trying to get a loan.

Risks of borrowing while unemployed

Taking out a loan comes with risks for both the borrower and the lender if you default.

Let’s look at some of those risks before you borrow while unemployed:

• Missed payments: One of the obvious worst-case scenarios when you take out a loan without a job is not being able to pay for the loan. Failing to pay back a loan can damage your credit, lead to collections and make an already challenging financial situation even tougher.
• Higher interest rates: If your income is low, you could still get a loan — but it’s more likely to come with a higher interest rate. Higher interest rates mean higher overall loan costs.
• Shorter repayment term: If a lender determines that you’re a riskier borrower, you may be limited to loans with shorter repayment periods. That’s because a lender is less likely to believe your financial circumstances will change in the short term.

These risks together are a great reason to consider some alternatives to taking out a loan when you’re out of work.

Alternatives to personal loans

• Credit cards: You may already have a personal loan alternative sitting in your wallet. Some credit cards offer a cash advance as a way to tap into your credit line outside of regular purchases. Just be careful: Credit cards can come with high interest rates depending on your credit history — and cash advances tend to come with their own high rates, too — so it’s best to pay off your balance on time and in full if you use them for short-term needs.
• Line of credit: A personal line of credit works similarly to a credit card in that you can add to your balance and pay it off multiple times over the life of the account. You make a monthly minimum payment, paying interest on your outstanding balance and possibly a fee for using the credit line. If you can qualify, this may be a reasonable alternative.
• Secured loan: You could consider using a home or other asset as collateral for a secured loan. Collateral is an asset you pledge to a lender in the event you stop paying for your loan. Interest rates can vary from relatively low to sky-high, so it’s not always an ideal option. And remember, there are also fees associated with these types of loans. The annual percentage rate takes into account the interest rate as well as a range of fees that may be associated with the loan. Also, don’t forget that you risk losing your home, car or other collateral as well as any equity you may have built up in them if you can’t come up with the cash to make timely payments on the loan.
• Home equity line of credit, or HELOC: This is a line of credit attached to the value of your home. It’s a form of secured credit, meaning your home serves as collateral and you risk losing it if you default on your repayment obligation. Again, remember to look at the APR, which should take into account the interest as well as any mortgage broker fees and other fees. Be sure to confirm whether there are any prepayment penalties, whether the interest rate increases in the case of default and whether there is a balloon payment — a very large payment required at the end of the loan term.

Bottom line

Getting a personal loan while unemployed is often more difficult than getting a loan while you have steady income from a job — but it might still be possible.

With any personal loan, it’s important to be mindful of the costs — and to think through all your options and possible alternatives. Signing up for a loan you can’t afford could make your financial situation even more challenging than it is today.