Five Credit Card Myths

Jesus, you need a credit card to build credit rights in order to rent a car or my online most people will see you do because that's the so-called conventional wisdom but one of the conventional wisdom is wrong what you don't know about credit card financial hot water Sunday so today financial planner and teacher Rob last, far too many people sign up cards along the reason your because of anything financial at 805,800 557455 minutes right here Rob is no doubt that a credit card can be a very handy thing to have but I guess it could be a double-edged sword. At times, right that's really the truth Steve credit cards certainly have their advantages but all of those disappear if you don't handle them properly and the only way to do that is by paying them off in full every month. If you don't the interest you pay will quickly wipe out any advantage like convenience or earning rewards any of that. Yeah, and I'm sorry and I'm thinking back to well not that many years ago in my life when we used to argue on the air whether or not you had to have a credit card or whether it was Christian to have a credit card work whether you could live without a credit card.

Those arguments seem to have passed us by. Because not credit cards are so much more than they were 15, 20 years ago. Well, unfortunately, they have become for so many people just the way we pay for things. And yeah, there are real reasons to be on your guard and if you don't have the right temperament or discipline. For I would toss it out. That's what were tackling this today I will talk about some of the wrong reasons why were calling the myths. So what's the first myth about credit cards.

The first Wednesday was that a credit card will save you.

If you have a financial setback like a job loss or the need to replace an expensive item thinking that way prevents you from saving up an emergency fund.

I think about it this way, if you don't have money on hand to meet an emergency, you have to borrow in the form of perhaps using a credit card, usually at a very high interest rate 28% isn't uncommon.

So start saving now to avoid that as we talk about, I would make your first goal $1500 and work your way up to one months living expenses and keep going until you have 3 to 6 months worth in the bank never rely on credit cards for emergency, fair enough. Okay credit card myth number two well, it's that you need one to shop online to rent a car. Once upon a time, that was probably true for renting a car, but it's never been the case for buying online. The fact is, in most cases a debit card will work just fine for those things now. In the case of a car rental. The company will probably put a hold on your account to your bank account that is for something like $500 so you have to make sure you have that much available but otherwise it won't be a problem yeah I'm try that next time I rent a car. Then I'll report back. But I've done something similar in the past and it seemed to work okay. What else run guess. Myth number three yeah, that is, you need one to earn rewards. No doubt, it's nice to get one or 2% back on your credit card purchases in the form of cash or other words and some cards offer as much as 5% back for certain categories of spending were certain purchases of do the math of your taint. Paying 28% interest on your ballots. Who exactly is getting the reward again a credit card is only useful if you pay off that balance in full every month I carve that one in stone right credit card myth that seat number four yeah and it's that you need a store credit card to save money when you buy things, stores love to give you bonuses and discounts when you sign up for one of their cards, but do you think that's to save you money. Probably not because they know most people carry a balance and store cards have some of the highest interest rates out there, they may actually make more money and interesting thing to selling things a store credit card is never a good idea. Unless you're just plain relentless about paying it off every month and even then you don't need a regular credit or debit card will work just fine. That's right yeah okay time for one more. Looks like we've saved the biggest myth for last, and just about everyone thinks this monster will that's right, Steve.

It's the one that you need a credit card to build credit.

Truth is, you can build a credit history just by paying your bills on time, depending on your income. Of course you can qualify for a mortgage.

By paying your rent, utilities and car loan on time every month. You may want to check with your landlord about having your payments reported to credit bureaus that won't necessarily do it, but they do have that option and keep in mind the reverse is also true. You can ruin your credit by not paying your bills on time, but if you insist on getting a credit card to build your rating. You can always look in a secured credit card that will only allow you to spend up to what's on deposit so you can't get right five great credit card myth to Rest Talking Dr., West you can to 800-5257. Would you like your life to be infused with joy. Would you like to interject and limit the most ordinary day on the radio says you can you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan. Finding the pleasure and eternal works of the treasure principle what you discover. Life will never look the same treasure principle is available when you click the store, but moneywise live.if you need investing. You probably want help that's grounded in God's work taken by sound mind investing since 1990. Semi's health. Tens of thousands of Christian supplier wisdom and confident in their investing investing experience how much you have doing that you can learn will still carry out investing more information about SMI and financial wisdom for living well is available online. Sound mind investing.he something that most people only really tuned to seriously.

When the chips are down. You and I can be sure that there are a lot more people praying to me that they would before the coronavirus break and get this whole crazy thing was, Nathan meant to be merely last resort.

Hi, I'm Betty diamond from Christianity works.com. The startling thing is that when you happen goals would you discover that the only sort of. The Bible teaches about is the sort that has powerful results.

I want to encourage you and gain with these truths. Listen carefully. The only sort of prayer that the Bible teaches about the sort that has powerful results. In fact, we told to come boldly boldly before the throne of Christ to receive mercy and find grace to help enough time of need. Second, I encourage you to die.

Pray boldly and let go on space rule in your heart.

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Christian credit counselors can help through our debt management program we can get out of credit card debt.

About 80% faster while honoring your debt info. For more information on how Christian credit counselors can help visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985, 800-557-1985 really blessed and honored to join us today.

It's moneywise live's Rob last time Steve Moran hears her phone number. If you have a question I conundrum a comment we have open lines.

We love to hear from you. 800-525-7000 and Rabbah five might one more warning about credit cards. This was for the guys you'll hear why. Second, having more than 45 credit cards in your wallet. Bad to sit on your wallet when you drive with that many credit cards you will end up in the chiropractor's office that you can Google this because you think I'm May and I would I make anything up. May I but I have heard and read from multiple chiropractors that it had to do adjustments on their on their clients if you will because they've been sitting on the wallet that's really thick because of for five or more credit cards and it'll do a job on your your back so duly noted that myth number six okay let's get serious here for just a second. Rob obviously our entire country is in flux right now and we're all struggling with just what to do, what to say what to believe and obviously how to respond as believers in Christ, as believers in Christ to this crisis that we face.

Yeah there's no question about that. Steve and I so appreciated it just the programming here a Moody radio all day have been listening Chris Brooks and Chris Weber in Dr. Mark Jobe and so many others, and of course our hearts break as we see what's happening around us are hearts are broken about the death of George Floyd in the racial and even systemic injustice that exists in all levels of society that we have to stand against and speak up for any victims of injustice in our hearts break for police officers around the country who fed their reputations bruised and in just the vast majority of cases unnecessarily because there on the front lines serving us and protecting us each day in our nation know our hearts break Steve as we watch the images of the senseless rioting, violence, the looting that's taking place in cities literally cross across America in the course. There's no place for any of this. So, as believers, I think, as you point out, we have to ask the question what should we do and we know that as Christ followers are prayer should always be that we should see this as Jesus sees it. And of course, that we would respond as he would respond so I think our first really action should be to stop to pray just call on the Lord to change us to bring peace to draw men and women unto him, we need the gospel of Jesus Christ. But I think we also need to listen well Steve, we need to hear our brothers and sisters who are hurting and we need to learn from those conversations we need to grow and be willing to change. That's a part of the sanctification process is the Lord changes our hearts and then of course we need to turn to God's work of the gospel of Jesus Christ is the antidote to the ills that plague our world and this is true in every area of our lives and this is also why we do what we do every day here on moneywise why we apply the truth of God's word to the resources he's entrusted to us. Remember it's God's money, and it's a tool to accomplish God's purposes, and it's actually our opportunity to join in him and what he's doing.

You know what you think about a time like this.

We can actually give of God's money to our local churches as they engage culture and serve those hurting in local communities, we can give to Moody radio to keep programming on the air like we've heard all day today to navigate the world in which we find ourselves through the lens of God's word so I think that's clearly what we're going to do today working to dive into God's word and working to live out the principles of Scripture which really will solve all of these challenges that we face today, but we don't do that flippantly we do that with great seriousness, knowing there's a lot of people hurting and so we want to ask God to intervene miraculously, you know, I loved what you said just a moment ago, we should be willing to be changed me. All of us like to think of ourselves as generous, fair-minded, compassionate people, but Original Sin will have its way.

None of us are right all the time that others are wrong all the time.

But if we are willing to be changed over willing to ask God make me like Jesus and really mean that in your heart and look for opportunities and not just ask one time ago on your merry way. But make that a daily prayer heart prayer if you will, that perhaps all of us will just get a little bit closer to Christ and therefore get a little bit closer to the many women that live around us that we may not know was well and understand as well as we ought that's very well said Steve. I couldn't agree more. Well, okay, let's take some calls. 800-525-7000, and again we appreciate your participation and we appreciate your prayers for us.

Thanks so much. Bermuda hi Antoine nice to have you with us or how are things where you are funny right now. Eight and and how are you doing, how can we help user while about credit card and about a year ago I got our credit card and unfortunately I was a bit overspending but listening to your show. I finally managed to get it under control.

I have a budget spending plan. I have three months savings.

So my question is should I when I'm paying off my credit card. I'm doing double the minimum payment like you know I like that a lot.

First of all into one. Thank you for calling and thank you for listening for that to the testimony of how you been able to make some changes that it really brought your financial situation. In line with God's principles and now you're reaping the benefits of that did you say you have about 10,000 in credit card debt currently. Apparently, yet I believe it 91.99 well, yes we want to get that paid off. Just as quick as we can because that's a guaranteed 22% return on your money, you're not gonna find that anywhere else. Here's what I love about what you've done. You went back to the basics which was you gotta have a spending plan right. You gotta take a hard look at every line item of the budget, the discretionary, the fix to those recurring and nonrecurring expenses and the key there is once you have a bit of reserves which you said you have three months savings, that's great.

I'd freeze that right there. The key is to create margin by dialing back spending by limiting your lifestyle and by creating a surplus that can then be applied to your God-given goals and objectives, and I would say, given the situation you find yourself in, namely eradicating this credit card debt so I would be sending beyond your current plan. Every available dollar to those credit card so you can get that paid off. Just as quick as you can double the minimum payments. Great if you can do more by cutting back in other areas do even more than that, and we often recommend Antoine the what's called the debt snowball which is basically where you go minimums on all of them and then take all that excess surplus and put that toward the balance with the lowest stories he's been a card with the lowest balance get that paid off and then move right down the line. That's can give you the motivation along the way to keep going. So I love your plan and the only thing I would say is if you can find more money in the budget to send the credit cards do it crashing because of the coronavirus parent Bermuda actually allowed us to do a one time girl from our pension plan to try thousand now mock, applied it to my credit card. I was considering putting that in a voluntary pension so that way I can, but) I get much over there whenever I needed. I see you you pull it out of the pension which would convert to a monthly income stream and then give you little bit more control over it in the voluntary pension while it if I put it on the pension plan at the plate back into a voluntary pension so that when I get it will get interest and then I can when I get older you will be a monthly payment right, you'll just have more control over the voluntary pension then you will the pension that you have growing currently is a right yeah yeah yeah you're not creating a taxable event which you should mean the idea that you could exercise that voluntary pension and perhaps get a little better rate of return on it and have more control over the money down the road alongside the current pension that's going to continue to be a function for you as you move through the years toward retirement. I have no problem with that. I think I would just not pull it out. What you said you're not going to but just_this not pull it out for any other purpose. Antoine, we appreciate your phone call today. God bless you up to Michigan high had what your credit card question. Very pretty clear you Besser card or debit card. Whatever you either online or anywhere and when you give them your number on the front of the car that three digit number on the back of the card. When I ran into at one time was I made a purchase and we don't want to take the back card back number on the back of the card anymore because the banks are saying that you know, violating your security of your card from wondering what you love and that is required these days now were yeah and I wouldn't have any concern about that you know that three or four digit number on the back of the card is called the CVC or CVD. The CPV stands for card verification code or card verification value either one and it's therefore what's called a card not present, purchase or transaction. So think online over the phone. That's were you provide the code because it confirms that you're actually in possession of the card and the transaction is most likely legitimate so that's the purpose of it.

That's why the credit card companies provided. That's why you don't have to provide it or it's not referenced when you're in person and their swiping or dipping the credit card but you I would have no problem using it again. That's why it's there and you know it's just for your own verification purposes and on some cars. It's a three digit code. I have two cards, one has a three digit code. The other as a four digit code but they do the same thing that great question and I'm sure lots of people and wondered about that. Thank you very much.

It's moneywise live taking your calls today at 800-525-7000.

If you haven't visited our website, you should check it out if you have a few minutes in your hands moneywise live.Margie uncertain times. You can place an microbrews new book financial. Instead, it just a short assessment will show you where you are now online for ages financial wisdom and action plan in writing to transform right now. Qwest financial support, moneywise live with the gift of $25 more moneywise live and work in sampling to which the here's perspective constraining something three Intel right not to tell whether or not we believe the core of our belief system. If we are convinced it's bizarre I believe to be the Lord's will that we know in my life now mentality, the more you know you really think we know we tell no. What is no right online television teaching justice is a perfect tool to agree with you more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money on the Randy Elmore and breaks it all down in a simple, easy to follow format that makes it the perfect reference tool if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you store moneywise live.org is a lot of discussion about who is who is an essential worker, guess who's essential when it comes to a radio call radio call-in program that would be you without you there.

We just be talking to ourselves. So if you'd like to chat today about something financial question a comment or concern give us a call 800-525-7000. Mary is from Georgia, Robert, she's driving to Texas where are you right now. Mary tell you to Texas you get when you get into Texas.

My understanding is you have to stop it. Lucky there's something about that while all that would be a problem. I have all my friends from Texas. Tell me the next time into him in Texas. That's where I have to go glad you called today glad you're staying safe on the road and how can we help Georgia and mortgage and how soft 20 year rebate I get back or anything. No ma'am however you're doing the right thing. Here's what that rebate is it look like that rebate is gonna look like a lot of interest your money that you're not going to have to pay to the bank or the lender because with an amortized loan. The longer the payback.

The more interest you're going to pay because of the way the interest works so if you pay more than the minimum payment, thereby reducing the term and in your case instead of paying back in 30 years. Payback in 20 years, you're cutting off 10 years of paying interest on top of the principal portion of your payment each month and all of that, you could call it a rebate it's just savings. It's money that's in your pocket at the end of the the life of the mortgage once it's paid off, that if you had paid over 30 years would've all been sent to the mortgage company so yeah it's not called a rebate. But it's a very very good thing, because it's real dollars and its real savings that you're going to end up with at the end of the day so I would just stay right on this track. Mary if you can get that paid off in 20 years instead of 30 that would be a very good thing. I just now got bless you, thank you to buy a great question Illinois as silver.

Thank you for your patience. How can we help you how. Regarding credit card like without going on right clicking my credit card like my monthly income. Yeah, it's a great question silver is that the 10,000 in credit card debt is that all on one card card okay and what is the interest rate you're paying around 20 okay and if you were to look at your monthly expenses, and you may not know the exact number and that's fine, but roughly what are you the total of your monthly expenses now.

1500 okay. Do you have a budget that you've done where you've gone through and looked at each expense and actually written it down and taken the time to track it over time.

Yeah okay well here's what I would do you know if your job situation is really precarious and you. For instance, you may face losing a job or there may be a major change than I'd hang onto the that cash reserves but if you feel like your job is fairly stable and you really don't anticipate any major disruptions that I'd be willing to you take down to about 5000 of that put it toward the credit card and then keep the other 5000, or about three months expenses in reserves and then take the extra each month and try to pay it off in full. The next year right back. How should we as Christians think about what if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we design investments for performance and better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is available@investeventide.com Christian healthcare ministries enables believers to meet their healthcare costs affordably, biblically and compassionately. It's not insurance but a voluntary cost-sharing ministry based on the biblical sample of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries might be your health cost solution call 800-791-6225 or visit CH ministries.org Moody radio is found in Psalm 91 through 60 because he loves me, says the Lord. I will rescue. He acknowledges my name will call on me and I will answer.

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You can take advantage of navigating the mortgage mates by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage makes available when you click the start button moneywise live.org son John Scott as people flooded streets across America to protest the killing of George Ford, public health experts offering the crowds tear gas at a rest lead to new transmissions of coronavirus Associated Press review found that in the last week protest have been held in every one of the 25 American communities with the highest concentrations of the new virus. New York City has extended an 8 PM curfew all week now Mayor Bill de Blasio's announcement comes after a night of chaos after interrupted again a bit protest over George Ford step despite an 11 PM curfew stocks are closing higher on Wall Street today for the third day in a row continuing stretch of gains for the market but I'll gain 267 points today, but as backup 56 and the S&P 500 picked up 25. This is SRM use anything that you want to talk about anything financial today, but without a lot of credit card calls right now.

Another thing that credit cards are good for neither of us mentioned it earlier in the programmer, but I have use my credit card to scrape ice off my windshield and I'm not recommending that all the time everywhere all the time. He know 1 inch of ice Inc. did not happen, you know, but I've used it and it works well and I've locked myself out of the garage to get in the kitchen so there is multiple see there's an entire program. What have you used your credit card for her other than what is supposed to be used for call us and let us know in the best call gets up price something I awake to come up with something 800 800-525-7000 that Demetri's in Tennessee and what your credit card question for Rob West did not call about the credit card in my life. We got a credit card when you credit card for all of our part. Everything, and what we do.

We every month. My questionnaire got a good idea. You know, or should I just called my card and use cash or debit card delete you have any problem with this plan in the key was that you said you and your wife use it to pay for your budgeted items so as long as you're not using the credit card to buy things you wouldn't otherwise have purchased. But these are all planned budget expenses number two. You're paying it off in full every month you not paying any interest as long as there's not an annual fee of some kind. Because these days is not really any reason to do that.

There's great cards with great rebates that have no annual fees as long as you're doing those things that it's providing the convenience of you being able to use that throughout the month and not have to carry cash or envelopes and then number two you are building your credit because every month you pay it on time your rights being noted that your non-time payer which is keeping your credit file current and keeping your credit score high so I think I would stay right with it and I continue on the course you're on.

Yes sir, thank you for calling thanks S all right out to Kansas City because it was your question today for Rob West is religious. I would having us see as you turned on your radio for us and go right ahead so Hester is yes ma'am you know I know not to know is that it's a great question and I'm glad you're paying it off quickly. You want to make sure you don't run right up to the end of the due date, which means you might miss it every now and then or something your wanting to that paid off even quicker and that's perfectly fine. What's can happen is at the end of each cycle, which is the billing. At that card. The balance is going to be reported to the credit bureau and you're going to be reported as an on time payer and it doesn't make any difference whether you pay it on the due date or you pay it early.

The key is that it's paid in full and you're being reported as an on time payer and that's exactly what you want. We appreciate that question yeah and if Gazeta continues to pay this off early and in full after a few years, what's likely to happen. Well, I will take a few years said they're going to increase her credit limits Apple times and encourage her to perhaps add an authorized user and anything that would ultimately result in her carrying a balance and depending on the company some custom card companies may not see you as a very very favorable customer because not making much money off you so that's kind of the downside of that. But there is so many upsides to paying it off early and paying it off completely that we don't actually want to worry about not being able to get a card if we need it. Morris Iowa Darrell what's your question. Your people calling about. Sure, we actually received our prepaid credit card is blank. You know, it wasn't obvious from the envelope what it might be a way credit card offer something you will will people may have gotten it and not realize it. Yes, you're exactly right Darrell, I'm glad you mentioned that because we do need to continue to get the word out. Some people feel like this may be a scam they're hesitant to use it, but it is in fact what's happening. The Treasury Department said it would send these loaded debit cards with stimulant pain stimulus payments to literally millions of Americans. The cards are issued by a bank called meta-Bank and ETA and there specifically send to people who didn't provide the IRS with banking information and whose tax return was processed either in Austin Texas or in Andover Massachusetts. But you can withdraw cash from an ATM, you can transfer the funds to a bank account.

You can even have them issue a check or make purchases wherever visa is accepted. So it's perfectly legitimate and you I would proceed and I appreciate you calling it out because it does come in an envelope that clearly does not indicate what it is and you might understand why because they don't want it to be stolen. Yeah, great call Darrell.

Great reminder for all of her listeners thank you very much Illinois Melanie.

What's your comment or question for Rob hi, I filled out after I get my life.

I like them. Then I got my hair and I had to carry on my daughter like she was only 17 and that I would be getting $500 for her because she had work she had never target income tax and she was able to be put on my file I received my end of April but she might like to have it hurt and I don't know why they didn't make it.

I think I don't like it in the bank yeah yeah well oftentimes they are coming separate. Did you claim your daughter as a dependent on your 2019 tax return or on your what about the 2020 20 2010 2020 okay that I will now start working yes okay so that that may be the issue is that you know it's not she's not being claimed as a dependent for 2020 when you file your 2020 tax return. Had she still been a dependent. You would've clearly gotten it but you know that may be the issue so I would check out the IRS's website.

She also has to be under 17 to get the $500 what did you say her age was under 500 and why my account.

My Looking just a bit further because there are so many nuances want to be sure we give you the exact information start team will check that out and keep listen to the program will try to weigh in before were done we will indeed.

Thank you for calling in. This is moneywise live Rob West taking your calls at 800-525-7000 more will be back with more trusting microbrews financial show 4 inches of financial wisdom help my power word right now. You support my gift of $25 and moneywise my.org and I'm here to help you understand God's purpose for your life in the eyes of a layman so much to do, so little time. That should be uppermost on every Christian's mind. How many people do you know that don't know the Lord may never know him. Unless you tell them God's place. You as the watchmen on the wall for those around you if you share the love of God with them and they don't respond, don't die in their sin. But if you don't share the love of God within. Bill died in their sin and their blood will be on your hands. You are your brother's keeper and the clock is ticking. Rome wasn't built in a day in Boston would not accept the Lord of the day it's a process something longer than others in the in the Lord that brings the harvest.

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The way we deal with uncertainty lets us know where Jesus is ahead of us leading behind us just carrying stuff pretty confronting, look, I know the Corona pandemic is serious. And yes, we sure would be taking sensible precautions. Still, some people will lose their livelihood. Some people will get sick and yes some people will die.

That's just the reality wrote down a free one of you will ties before any of them existed today, tomorrow, next week, next month.

Now that this is any surprise to him, comfort from this day through till the very last die on this earth. He has it covered. Yes. Be sensible. But don't be afraid you know the seven things not to do with your money and uncertain times, and would you like to know the ways to trim your budget amid the current pandemic you get those answers and much more. When you subscribed to the moneywise magazine will receive valuable expert articles to follow advice and get access to exclusive podcast episodes and your subscription is free, get access to the moneywise magazine moneywise live.work/lineup place where we do our best to help you understand God's word and how to find money your finances your life 800-525-7000 out to Oklahoma. Thank you for holding Roy so patiently and how can we help will years old and I've been retired here.

My income from retirement five dollars a month so I live on.

Five dollars a month which means I don't pay any income tax. I don't register with our fellow below the amount required to the radar screen with them if I just received the stimulus check for $1200 if I cash this is the number one going to have anything to do with changing my situation. No sir because the stimulus check is not taxable.

So this is not something it's can add to your taxable income and therefore whatever situation you are in previously in terms of whether or not you needed to file because you were below the deduction threshold. The standard deduction that will not change as a result of the stimulus check because again, that's a nontaxable event, so you should be fine cashing that and use it for whatever purpose of the Lord direction of the government makes no money so they taxpayer assistance standing its balance sheet to make this happen as a result of the coronavirus and trying to stimulate the economy and adding trillions ultimately to our debt. As a result of this. Clearly this is something we needed to do in part. Unfortunately we've not been paying down our debt during the largest expansion we've ever seen over the last decade, but that's a topic for another day. But at the end of the day. This is a nontaxable check your receiving so well through the reserve adding to the bankruptcy making it better. We're adding to our debt yes which is now exceeding 22 trillion Roy will be happy discuss and discuss them with you another day and when were prepared to really get into it deeply. We appreciate your sentiment and your call today.

Thanks very much. Tuscaloosa, Alabama. I presume it just as Tuscaloosa my screen, but how many can there be hello Karen what you question her collar on timeout like that. I know it for me didn't want to. I'm wondering if canceling the card in your my credit on my credit you have a good credit history, but will see you now if I need to jump ship and pretty hard for emergency yes a great question Karen. I let me ask you do you plan to continue to use a credit card moving forward for budgeted items and then pay it off in full.

Are you moving to more of a cash system or a debit card, credit training pants okay very good so there's really no need for you to have this card. I certainly wouldn't be spending $99 a year just to carry around in your wallet. And I wouldn't worry worry about it.

Damaging your credit rating is a couple of factors that relate to the credit rating in relation to closing accounts. Number one is if you are carrying balances by closing the account. If that particular limit. The credit available to you through that card comes off of the total available credit. It's good to push your credit utilization out the balance. You always get to be a higher percentage of this now lower credit limit that you have available to you through all creditors, but because you're not carrying a balance that's really not going to be a factor.

The second issue is just that card coming off in terms of what's available and eventually the history of that car dropping off could impact his well it's gonna be minor if it's the impact you at all.

It's certainly not worth you know continuing to pay that hundred dollars a year so I would do is is check out any one of a number of website you could go to nerd wallet.com they rank credit cards every month and so you just look at the best credit cards nerd wallet.com you could go to credit cards.com. They do the same thing. You can also go to bank rate.com what you be looking for. There is a card with no annual fee with some sort of cash rebate.

And if you have a good credit score. You'll be able to qualify for it again only use it for budgeted items paid off in full, and that if you needed it. You had it, but there's nothing that says you have to have a credit card so you have your own SYSTEM.

I just close the account not worry about Karen. We hope that helps and were glad that you called in today. Thank you very much. Charlotte's good Ohio Rob you may remember a few minutes ago I don't know what I was thinking, but were talking about the many uses for credit cards and we went from financial to a handyman type tips and and I sort of invented a contest on the fly and said we give a prize out of the best call we got well will he got one call and then some.

Mark Markson aware you calling from an Ohio mark to Massillon, Ellicott, Ohio already and and tell us what you tell us what we what you've used your credit card for other than buying things well lots of different I am stuck in really bad without love to over work. Nowhere to go well and I is going to get in but I like myself and apparently Deb said that we've had a number of callers that are calling and saying, use them to scratch their back and they make guitar picks great guitar case so I was using you his number one buddy as you get through first and essentially were running out of time. But you know they have this new stuff out there called floss. Have you ever tried that yet, but I don't. I don't have work now will it Mark is working to do.

We can either send you a 2019 Toyota Camry that you'll have to pay Texas on or we can send you a complimentary copy of the stewardship Bible and I think will get to go the Bible route.

Is that okay well yeah but it is family use down the line will get your address and if God wants you to have a Camry I'm sure he'll get it to you but were were glad that you called today when I Bless you. Thanks and let's see. You never know what's going to happen and I was wondering where you're going with the free car you have for 5 cups of coffee before you come in and it opens up a whole new galaxy of opportunities LeeAnn's in Alabama and what's your question or comment lien by your exactly right. Here's why it is because the balance it's being reported is before you pay it off every month. And so you're actually showing on your credit report that you're charging up to the limit, which even though you're paying on time and that's a good thing. In fact, that's the most significant thing it is running a higher utilization of the total available balance even though you're paying it down and then charging it back up. So you would be better served to go. I didn't have that increase in limit as long as that's not to be a temptation to spend more or spend for non-budgeted items that don't align with your your goals and your values. But given that you're on time payer every month. Given that you're paying in full every month. I suspect they won't hesitate to increase that limit and that will likely improve your overall credit scores. It's a great question, very perceptive on your pardon, I would totally agree.

LeeAnn thank you very much. We do appreciate that around before we go.

Today we have just a couple of minutes left here at the most. The magazine, fill us in on that. Why should folks check that out for one thing, it's free. Well that's exactly right Steve, it's brand-new and it's out for our very first quarter. It will be a quarterly publication electronic.

Of course, in our very first one is on the theme of financial hopes of you not subscribe for our brand-new moneywise. The magazine we'd love for you to do that just head over to moneywise live.org, you'll see near the top place you can click to subscribe, give us your email address. That email address will never be sold or used for another purpose other than to provide you real value godly counsel as it relates to managing his money and our summer edition will be out in late June, Steve, and it will be all about marriage money and families. So how you can lean into that topic from a biblical perspective were really excited about this magazine you got a lot of great information biblical practical are some areas in there that I think you'll find fun so check it out today.

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Thanks for listening. Join us again tomorrow