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Apache is functioning normally

July 31, 2024 by Brett Tams

When checking out at a store, you might be prompted to select whether you want the purchase processed as a credit or debit card transaction. Some debit cards with a credit card network logo can be processed as a credit payment, but the reverse — processing a credit card as a debit transaction — isn’t possible.

Still, it can make sense to use credit cards like a debit card. Understanding the difference between a credit card and debit card can help you to make strategic purchasing decisions with your credit card.

Recommended: What is a Charge Card

Can You Use a Credit Card Like a Debit Card?

In terms of being a convenient, cashless payment method, a credit card can be used in-person or online in a similar way as a debit card. Credit cards require you to insert, swipe, or tap the card on a payment processing device to initiate a transaction. If used online, you can enter your credit card information into the payment field at checkout in the same way you would with a debit card payment.

However, there are also significant differences between a credit card and debit card. The most notable distinction is where the funds come from. When you use a credit card, the money is drawn from your card’s available credit line, and you might get charged additional fees and interest on your purchase.

In contrast, a debit card draws the funds you already have in an associated checking or savings account. Also, in certain situations where the final total amount might vary, such as at the gas pump, the processor might request that your card issuer place a temporary hold on your debit card funds to ensure you have enough funds to cover the transaction.

Recommended: How to Avoid Interest On a Credit Card

Reasons You May Want to Use a Credit Card Like a Debit Card

Although credit cards offer numerous advantages when used responsibly, there are valid reasons to prefer using a credit card as a debit card. This may include:

• To avoid overspending. Debit cards, particularly when you’ve opted out of overdraft protection, help you to avoid spending more than you can afford to pay back. With a debit card, you can only use the funds already in your associated account, which is a tactic you could try with a credit card as well.

• To avoid finance charges or extra fees. Debit cards generally incur few charges. Additionally, they do not accrue interest since debit transactions are immediately pulled from your deposit account, in contrast to how credit cards work.

• To amass rewards without debt. The potential to earn credit card rewards is appealing, but “chasing points” can be a risky game if you overspend. The ability to use a credit card like a debit card can help keep your spending in check while earning rewards.

Recommended: Tips for Using a Credit Card Responsibly

Tips for Using a Credit Card as a Debit Card

You can’t technically process a credit card payment as a debit card purchase. But if your purchasing strategy is to use a credit card as your go-to payment method instead of a debit card, remember the following tips and credit card rules:

• Don’t spend more than you can afford.

• Do pay your monthly credit card statement in full.

• Don’t pay your credit card bill late or skip a payment.

• Do explore credit card rewards programs to earn incentives on purchases you already make.

• Don’t forget to review annual percentage rates (APR) and fees associated with your card.

• Do use a credit card for online payments for greater fraud protection.

Recommended: When Are Credit Card Payments Due

Pros and Cons of Using a Credit Card Like a Debit Card

The benefits of credit cards in comparison to debit cards vary since they’re two distinct banking products. However, each payment option has its own pros and cons.

	Pros	Cons
Credit Card	• Offers greater purchasing power • Can buy items now and pay for them later • Helps build your credit • Potentially zero liability for unauthorized charges	• Can accumulate burdensome debt • Late and missed payments adversely affect your credit score • Can incur interest charges and fees
Debit Card	• Avoids debt by using cash you already have • No additional interest charges on purchases • Can request cash back at checkout	• Buying power is limited to the funds you have • Insufficient funds may lead to overdraft fees • Doesn’t help build credit • Fewer protections with fraudulent charges

Pros

Cons

Credit Card

• Offers greater purchasing power

• Can buy items now and pay for them later

• Helps build your credit

• Potentially zero liability for unauthorized charges

• Can accumulate burdensome debt

• Late and missed payments adversely affect your credit score

• Can incur interest charges and fees

Debit Card

• Avoids debt by using cash you already have

• No additional interest charges on purchases

• Can request cash back at checkout

• Buying power is limited to the funds you have

• Insufficient funds may lead to overdraft fees

• Doesn’t help build credit

• Fewer protections with fraudulent charges

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Alternatives to Using a Credit Card Like a Debit Card

If you’re averse to using a credit card in a traditional sense, there are a few alternatives payment options that are akin to a debit-style transaction:

• Prepaid credit card. A prepaid credit card gets loaded with funds which then become your card’s available credit line. It gives you the convenience of a credit card but taps into cash you already have, which is similar to a debit card. Note that prepaid cards often incur fees for various types of activity.

• Cash-back rewards debit cards. If you want the perks of a credit card, like cash-back incentives, but in the form of a debit card, a cash-back debit card might be an option. These limit you to spending the funds you already have on deposit, but let you earn cash back when you use the card.

The Takeaway

Using a credit card like a debit card ultimately boils down to only spending on your card with funds you already have. Since a credit card is essentially a loan, it’s easy to accumulate overwhelming debt, plus interest charges, if you’re overspending. If you can comfortably afford to repay your credit card transactions in full each month, using your credit card in lieu of a debit card can provide access to valuable benefits, like earning rewards, enhancing fraud protection, and possibly building your credit.

Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Can I transfer money from my credit card to my bank account?

No, you can’t transfer money from your credit card to your bank account. A bank account is a deposit vehicle for your available cash; this cash can be accessed using a debit card. Conversely, a credit card is a financial tool that lets you access a credit line that you need to repay.

Can I use my credit card like a debit card at an ATM?

Yes, you can use your credit card like a debit card to get a cash advance at an ATM. Be warned that this is a costly option. Credit card cash advances typically have a different limit compared to your purchase limit, and they usually charge a higher APR with no grace period. Plus, you’ll owe a cash advance fee.

Can I use a credit card as a debit card with no interest?

Possibly. You might be able to use a credit card like a debit card for everyday transactions without incurring interest, if you pay every billing statement in full each month. Rolling over a balance month after month, however, will cause you to incur interest charges.

Is it better to use a debit or credit card?

Whether using a debit or credit card is a better option depends on the types of purchases you’re making and your borrowing habits. For example, credit cards are generally safer when shopping online, but buying on credit can get out of control quickly if you’re not careful.

Photo credit: iStock/filadendron

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOCC-Q324-009

Source: sofi.com

Apache is functioning normally

July 31, 2024 by Brett Tams

Moving to New Hampshire provides residents with picturesque landscapes, charming small towns, and lively cities. The state is known for its four distinct seasons, outdoor recreational opportunities, and a strong sense of community. Whether you’re browsing homes for sale in Concord, considering renting in Manchester, or exploring houses for rent in Nashua, here’s what you need to know before moving to New Hampshire.

New Hampshire at a glance

From the stunning White Mountains to the serene lakes and coastline, the state caters to those who love nature and city life. The largest cities in New Hampshire—Manchester, Nashua, and Concord—are hubs of cultural activities. Manchester, the largest city, is a thriving center for business and culture, while Nashua offers suburban charm and urban convenience. Concord, the state capital, is rich in history and provides a welcoming community atmosphere.

New Hampshire’s economy thrives on sectors such as technology, healthcare, education, and manufacturing, with major companies like BAE Systems, Dartmouth-Hitchcock, and Fidelity Investments headquartered here. The state’s cultural scene is diverse, featuring world-class museums, annual events like the New Hampshire Film Festival, and a culinary landscape that celebrates farm-to-table dining and fresh seafood. Educational excellence is anchored by institutions like the University of New Hampshire and Dartmouth College. Affordable living options can be found in towns like Hudson, and Derry, making New Hampshire an enticing choice for those seeking quality of life.

1. There’s no sales tax here

New Hampshire is one of the few states in the U.S. that does not impose a sales tax on goods and services, making shopping more affordable. This tax advantage attracts shoppers from neighboring states and extends to a wide range of purchases, from everyday items to big-ticket goods. Additionally, the lack of sales tax contributes to the overall lower cost of living and can be particularly beneficial for large purchases such as vehicles and home appliances. This financial perk enhances the state’s appeal by allowing residents and visitors to save money on both routine and significant expenses.

2. New Hampshire has many charming small-towns

The state is dotted with picturesque small towns that exude New England charm. Places like Hanover, home to Dartmouth College, offer quaint downtown areas with boutique shops, cafes, and historic architecture. Portsmouth, with its waterfront location, has a rich maritime history and vibrant arts scene. Each town has its unique character and attractions, making New Hampshire a delightful place to explore and live.

3. Get ready to experience the autumn foliage

New Hampshire is renowned for its spectacular autumn foliage, drawing visitors from all over to witness the vibrant colors. The Kancamagus Highway, which runs through the White Mountains, is one of the most famous scenic drives for fall foliage. Additionally, Towns like Conway and Lincoln become hotspots for leaf-peeping, with numerous hiking trails and scenic overlooks providing breathtaking views of the red, orange, and yellow hues.

Travel tip: Visit early in the season, as peak foliage can vary year to year. Also, consider starting your drive early in the morning or late afternoon to avoid crowds and get the best light.

4. New hampshire has beautiful coastlines

New Hampshire’s coastline, though relatively short at just 18 miles, offers stunning seaside scenery and charming coastal communities. Hampton Beach is a notable destination with its sandy shores, bustling boardwalk, and vibrant summer events that attract visitors and locals. In addition to Hampton Beach, the town of Rye offers a more serene coastal experience with its scenic Rye Harbor and nearby Odiorne Point State Park. This area provides beautiful rocky shorelines, tidal pools, and walking trails with expansive views of the Atlantic Ocean. The park’s natural beauty and peaceful atmosphere make it a great spot for coastal exploration and relaxation.

5. You’ll find top-rated educational opportunities

New Hampshire has top-rated educational institutions, from esteemed private schools to renowned universities. Dartmouth College in Hanover is an Ivy League institution known for its rigorous academics and beautiful campus. The University of New Hampshire, located in Durham, offers a wide range of undergraduate and graduate programs. These educational opportunities contribute to the state’s reputation for high-quality education.

6. The breweries and wineries are thriving here

New Hampshire’s craft beverage scene is thriving, with a growing number of breweries and wineries showcasing local flavors and innovations. The state is home to renowned breweries like Redhook Ale Brewery in Portsmouth, known for its diverse beer offerings and vibrant beer garden, and The Portsmouth Brewery, which has been a staple in the craft beer community since 1991. In the wine sector, LaBelle Winery in Amherst produces a variety of high-quality wines, from crisp whites to robust reds, and offers guided tours and tastings that highlight their commitment to local ingredients.

Insider scoop: Visit during seasonal events like Oktoberfest or harvest festivals, where you can sample limited-edition brews and wines while enjoying local festivities and live music.

7. There are four distinct seasons

Residents of New Hampshire experience four distinct seasons, each bringing its own beauty and activities. Winters, with temperatures often dropping below freezing, are perfect for skiing and snowboarding in places like North Conway and Bretton Woods. Spring sees temperatures warming to the 50s and 60s, bringing blooming flowers and fresh greenery, ideal for hiking and outdoor adventures. Summers, with temperatures ranging from the 70s to 80s, are warm and great for lakeside activities in the Lakes Region. Autumn, with temperatures cooling to the 50s and 60s, features stunning foliage, making every season special and enjoyable.

8. The activities on the White Mountains are endless

The White Mountains in New Hampshire offer a virtually endless array of activities year-round, attracting outdoor adventurers and nature lovers. In the summer, visitors can enjoy hiking trails such as the challenging Mount Washington and the scenic Franconia Ridge Loop, which offer stunning views and diverse terrain. Winter transforms the region into a haven for snow sports, with ski resorts like Bretton Woods and Cannon Mountain providing excellent opportunities for skiing, snowboarding, and snowshoeing.

Travel tip: Be sure to check weather conditions and trail statuses before heading out, as conditions in the mountains can change rapidly. Consider investing in a trail map or guidebook, and if you’re visiting in winter, make sure to bring appropriate gear and check avalanche forecasts for safety.

9. The cost of living varies throughout the state

The cost of living in New Hampshire varies significantly across the state, reflecting differences in housing markets, local economies, and amenities. In cities like Nashua, the median home sale price is $475,000, which is higher than the national median of $442,479. Conversely, in smaller towns such as Keene, median home prices can be around $315,000, offering more affordable housing options. Rental rates also show variation, with average monthly rents for a one-bedroom apartment in Manchester is $1,837, while in smaller towns like Concord, rents can drop to about $1,405. Rural areas and smaller communities generally present more budget-friendly options, making them appealing for those seeking lower living costs.

If you’re planning on moving to New Hampshire, you’ll want to consider the pros and cons of living in the Granite State to learn more about what life is like.

10. The state is close to major cities

Living in New Hampshire provides easy access to several major cities in surrounding states. Boston, MA, is just an hour’s drive from the southern parts of the state, offering urban amenities and job opportunities. The city of Portland, ME, is also within a short driving distance, known for its vibrant arts scene and coastal attractions. This proximity allows residents to enjoy the tranquility of New Hampshire while benefiting from the resources and opportunities of nearby metropolitan areas.

Methodology

Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.

Source: rent.com

Apache is functioning normally

July 31, 2024 by Brett Tams

1. Outdoor recreation is a way of life

With the Rocky Mountains as your playground, outdoor activities are a significant part of life here. Hiking, biking, and rock climbing are popular, with iconic spots like Garden of the Gods and Pikes Peak offering breathtaking experiences. Whether you’re a seasoned adventurer or a casual explorer, the outdoor lifestyle is hard to resist.

2. The cost of living is reasonable

Compared to other Colorado cities like Denver, Colorado Springs offers a more affordable cost of living. Housing prices are relatively lower, and there’s no state sales tax on groceries. However, property taxes and utility costs can be higher, so budgeting accordingly is essential.

3. A robust job market

The job market in Colorado Springs is robust, with opportunities in various sectors such as defense, technology, and healthcare. Companies like Lockheed Martin, Progressive Insurance, and UCHealth are some of the top employers. The city’s unemployment rate is lower than the national average, making it an attractive place for job seekers.

4. The weather is unpredictable

Colorado Springs experiences all four seasons, sometimes in a single day. Known for its microclimates, you can expect sunny mornings, afternoon thunderstorms, and chilly evenings. Be prepared for sudden weather changes and always carry layers. The city gets over 300 days of sunshine annually, but snow can fall as late as May and as early as October.

5. The Military presence is strong

Home to several military installations, including the United States Air Force Academy, Fort Carson, and Peterson Space Force Base, Colorado Springs has a significant military presence. This influence is seen in the local economy, culture, and community events.

6. The art and culture scene is thriving

The art and culture scene in Colorado Springs is thriving, with numerous galleries, theaters, and music venues. The Colorado Springs Fine Arts Center at Colorado College and the Pikes Peak Center for the Performing Arts are notable cultural hubs. The city hosts events like the Colorado Springs Labor Day Lift Off and First Friday Art Walks.

7. Educational opportunities abound

Colorado Springs is home to several higher education institutions, including the University of Colorado Colorado Springs (UCCS) and Colorado College. The city also has excellent public and private schools, making it a great place for anyone seeking quality education.

8. Charming neighborhoods to choose from

The city offers a variety of neighborhoods, each with its unique charm. Old Colorado City is known for its historic buildings and quaint shops, while Briargate offers suburban amenities and top-rated schools. Downtown Colorado Springs provides an urban vibe with plenty of dining and entertainment options.

9. A culture of fitness and wellness

The city’s fitness culture is strong, with numerous gyms, yoga studios, and wellness centers. The high altitude encourages a healthy lifestyle, and many residents take advantage of the extensive trail system for running and cycling. The annual Pikes Peak Marathon is a testament to the city’s dedication to fitness.

10. Local brews of the coffee and beer variety

Colorado Springs has a burgeoning craft beer and coffee scene. Breweries like Phantom Canyon Brewing Co. and Bristol Brewing Company are popular spots, while coffee enthusiasts enjoy Switchback Coffee Roasters and Loyal Coffee. The city’s commitment to local businesses is evident in these thriving establishments.

11. Festivals and community events

The city hosts numerous festivals and community events throughout the year. Territory Days, the Pikes Peak International Hill Climb, and the Colorado Springs Labor Day Lift Off are just a few examples. These events foster a strong sense of community and provide plenty of entertainment options.

12. Proximity to Denver

Just an hour’s drive from Denver, Colorado Springs residents can easily access the amenities of a larger city. This proximity allows for convenient day trips to enjoy Denver’s shopping, dining, and cultural attractions without the hassle of living in a big city.

13. Top notch healthcare

The city boasts excellent healthcare facilities, including UCHealth Memorial Hospital and Penrose-St. Francis Health Services. Access to quality healthcare is a significant advantage for residents, with many specialized services and medical professionals available.

Apache is functioning normally

July 31, 2024 by Brett Tams

Update 7/30/24: Deal will end tomorrow.

Update 6/14/24: This offer is now available via public link. The public version gets 70k directly and does not need the authorized-user card added. (ht dealdad)

The Offer

No direct link to offer, available via referral. Find & share your referrals in this linked post.

Sign up for the AAdvantage Aviator Red World Elite MasterCard and receive a signup bonus of 60,000 AAdvantage miles after you make your first purchase in the first 90 days and pay the $99 annual fee and an additional 10,000 points after you add an authorized user and make a purchase within the first 90 days

Card Details

No foreign transaction fee
Annual fee of $99 is not waived the first year
First checked bag free, for the primary cardmember and up to 4 companions on eligible bags when traveling on domestic itineraries operated by American Airlines
Group 5 boarding, for the primary cardmember on domestic itineraries operated by American Airlines
25% inflight savings on food, beverages, and headsets on American Airlines-operated flights
Earn 2x miles on all eligible American Airlines purchases
Earn 1x points on all other purchases

Our Verdict

Not as good as the 75,000 point bonus. The upside is this is available via referral so if you can refer a friend/family member and effectively split the referral miles then this offer is actually better. You can see how being added as an AU affects your credit by reading this post. We will add this to the best credit card bonuses, but keep in mind if you’re not using a referral from somebody you know it’s probably better to wait for the 75k bonus to return. This is also the best offer on a card with no minimum spend. Read through these things you should know about Barclays credit cards before asking any basic questions in the comments.

Source: doctorofcredit.com

Apache is functioning normally

July 31, 2024 by Brett Tams

Are you feeling overwhelmed by debt and looking for simple ways to tackle it? You’re not alone. Many people struggle with finding effective methods to pay off their debt.

Luckily, there are plenty of easy strategies that can help you get out of debt faster. In this post, you’ll discover 12 surprisingly easy ideas that can make a big difference. From small changes in your daily habits to smart financial moves, these tips will help you take control of your finances and work towards a debt-free future. Let’s dive in and explore how you can start paying off your debt today.

1. Don’t Spend Money or Open Your Wallet

Image Credit: Luckyraccoon from Getty Images.

Avoid impulse purchases by keeping your wallet closed. This is a simple way to save money and focus on paying off debt. The less you spend, the less debt you have.

2. Skip Eating Out

Image Credit: BartekSzewczyk from Getty Images Pro.

Eating at home can save a lot of money. Preparing meals at home helps cut down on expenses, helping you pay off debt faster. You just have to plan a little ahead

To learn more: 100+ Frugal Meals for When You’re Broke or on a Budget

3. Stop Extra Subscriptions You Don’t Use

Image Credit: Metamorworks from Getty Images.

Go through your bank and credit card statements to see your auto pay charges. Cancel subscriptions you rarely use. This will free up extra cash to put toward your debt.

4. Wait for That Vacation

Image Credit: Anyaberkut from Getty Images Pro.

Postpone big trips until you’re debt-free. This allows you to save money now and enjoy vacations more once you’re debt-free. As I always said, say no until you can say yes.

Learn More: 7 Simplistic Habits Needed for Debt Free Living

5. Say No to Pricey Kid’s Activities

Image Credit: Lordn from Getty Images.

Opt for low-cost or free activities for kids. This saves money and teaches kids to enjoy simpler, less expensive fun. Plus you are modeling strong money management habits for your kids.

6. Start Cutting Your Own Hair

Image Credit: UfukSaracoglu from Getty Images Signature.

Save money by cutting your hair at home. (Shh! This is something I have done for 14 years now.) This reduces the need for salon visits and helps you put more money toward debt.

7. Get Off Social Media

Image Credit: Tolgart from Getty Images Signature.

Reducing social media use can cut down on spending triggered by ads and comparison shopping. This helps you save money and focus on debt repayment.

8. Find Free Entertainment

Image Credit: DanFLCreativo.

Look for free ways to have fun first. Libraries, parks, and community events can provide entertainment without costing a dime.

To learn more: 105 Fun Things To Do With No Money

9. Pass on the Daily Coffee Habit

Image Credit: Weedezign from Getty Images Pro.

Skip buying daily coffee from cafes. Making coffee at home saves money, which can be used to pay off debt. Some may even save over $2000 in a year.

10. Minimize Waste

Image Credit: Dee Angelo from Sakorn Sukkasemsakorn.

Use what you have and reduce waste. This helps stretch your budget and puts more money toward paying off debt. You may be surprised the number of ways you can turn frugal green!

To learn more: How to Be Frugal Green: 91+ Tips to Save Money and Environment

11. Participate in No Spend Year

Image Credit: Pixelshot.

Commit to a no-spend year where you buy only essentials. This extreme saving method can help you get out of debt much faster.

To learn more: No Spend Challenge: The #1 Fastest Way To Save Money

Be Smart to Pay Off Debt Faster

Image Credit: Andrii Dodonov from Getty Images.

Paying off debt faster requires smart choices and discipline. Every little bit helps, and with these tips, you’ll be on your way to financial freedom sooner than you think. Stay focused, stay frugal, and watch your debt decrease.

To learn more: 7 Things to Give UP to Pay Off Debt Faster

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

July 31, 2024 by Brett Tams

That’s a reality Shelton is also underlining to her clients. “When demand exceeds supply, your prices are going to go up,” she said. “So with all of these extra people that have been looking and waiting, we’re already at a lack of inventory and it doesn’t look like that’s really changing anytime soon. We have … [Read more…]

Apache is functioning normally

July 31, 2024 by Brett Tams

Closing a credit card with a balance remaining is possible to do. However, keep in mind that even if your credit card account is closed, you’ll still have to pay off the remaining balance. Additionally, you’ll need to cover interest that’s accrued as well as any fees, and you could face other consequences, including losing out on rewards and seeing potential impacts to your credit score.

Still, there are instances when closing a credit card can be the right move. If you’re thinking about closing a credit card account with an outstanding balance, you’ll want to weigh these considerations — and also ensure you have a plan for paying off your remaining balance.

Recommended: How to Avoid Interest On a Credit Card

What Happens If You Close a Credit Card Account With a Balance?

Once you’ve closed a credit card account with a balance, you’ll no longer be able to use that card to make purchases. Beyond that, here’s what else you can expect after your account closure.

Payment of Balance and Interest

Perhaps the most important thing to keep in mind when a credit card is closed with balance is that you’re still liable for the credit card balance you’ve racked up. You’ll also owe any interest charges that have accrued on your outstanding balance.

As such, expect to continue receiving monthly statements from your credit card issuer detailing your balance, accrued interest, and minimum payment due. And until you’re absolutely positive your debt is paid off, keep on checking your credit card balance regularly.

Recommended: What is a Charge Card

Loss of Promotional APR

If the card you closed offered a promotional interest rate, this offer will likely come to an end. If you’ve been carrying a balance on a credit card, your balance could start to accrue interest. Plus, you may have to pay the standard APR (annual percentage rate) on the remaining balance rather than the lower promotional rate.

Recommended: Can You Buy Crypto With a Credit Card

Loss of Rewards

Before you move forward with canceling a credit card that offers rewards like points or airline miles, make sure you’ve redeemed any rewards you’ve earned. That’s because you may forfeit those rewards if you close your account.

Policies on this can vary from issuer to issuer though, so just make sure to check with your credit card company to be safe rather than sorry.

How Closing Credit Cards With Balances Can Impact Your Credit

There are a number of ways that closing credit card accounts with a balance can adversely affect your credit score given how credit cards work. Closed accounts in good standing will remain on your credit report for 10 years, whereas those with derogatory marks may fall off after seven years.

For starters, closing your account could drive up your credit utilization ratio, one of the factors that goes into calculating your score. This ratio is determined by dividing your total credit balances by the total of all of your credit limits. Financial experts recommend keeping your ratio below 30% and preferably closer to 10%. Losing the available credit on your closed account can drive up this ratio.

Closing your account can impact your credit mix, as you’ll have one fewer line of credit in the mix.

Closing a credit card could decrease your length of credit history if the card you closed was an old one. This too could potentially decrease your credit score.

That being said, the impacts can vary depending on your credit profile and the credit scoring model that’s being used. If, after closing your account, you pay off your account balance in a timely manner and uphold good credit behavior across other accounts, your score can likely bounce back.

Recommended: What is the Average Credit Card Limit

Is Keeping the Credit Card Account Open a Better Option?

In some scenarios, it may make sense to keep your credit card active, even if you don’t plan on spending on the card. Here’s when opting against closing your credit card account might be the right move:

• When you can switch credit cards: If your card carrier allows it, you might be able to switch to a different credit card it offers rather than closing out your account entirely. This might make sense if you’re worried about your card’s annual fee, for instance. You’ll still owe any outstanding debt on the old credit card, which will get moved over to the new card (the same goes if you happen to have a negative balance on a credit card).

• When you have unused credit card rewards: With a rewards credit card, closing the account may jeopardize the use of earned rewards. Avoid that scenario by keeping the credit card active until you’ve used up all the rewards earned on your current credit card or at least until you’ve transferred them to a new credit card, if that’s an option.

• When you don’t use the credit card: Even if you don’t use your credit card or use it sparingly, keeping the card open could build your credit score. This is because creditors and lenders usually look more favorably on credit card users who don’t rack up significant credit card debt, which is why maintaining a low credit utilization ratio is one of the key credit card rules to follow.

Nevertheless, there are certainly some scenarios when it can make sense to say goodbye to your credit card account. Here’s when to cancel your credit card, or at least consider it:

• You want to avoid the temptation to spend.

• You want to stop paying your card’s annual fee.

• The card’s interest rate is rising.

• You’d like to have fewer credit card accounts to manage.

Guide to Paying Off a Credit Card Balance

No matter what you do with your credit card account, you’re going to have to pay down your credit card debt. Here are some options you can explore to pay off your closed credit account with a balance as soon as possible.

To avoid making that mistake, here are some options you can explore to pay off your closed credit account with a balance as soon as possible.

Recommended: Tips for Using a Credit Card Responsibly

Debt Consolidation Loans

A personal loan at a decent interest rate can make it easier to curb and eliminate your card debt. Once the funds from the loan hit your bank account, you can use the cash to pay off all your credit card debts. Then, you’ll only have to keep track of paying off that one loan with fixed monthly payments, making it easier to manage.

Keep in mind that you’ll generally need good credit to secure a personal loan with competitive terms, though.

Recommended: When Are Credit Card Payments Due

Balance Transfer Credit Cards

A balance transfer card with a 0% introductory interest rate can buy you some time when paying down debt. You can transfer your existing debt to the new card, allowing you to pay down credit card debt at a lower interest rate, without racking up any additional interest payments during the promotional period.

Just make sure to pay off the entire balance before the card’s introductory interest rate period ends and the interest rate rises significantly. Otherwise, you may be right back where you started — with high credit card debt and a high interest rate. That’s not likely to be a good way to use credit responsibly. Also note that a balance transfer fee will likely apply.

Debt Avalanche or Snowball

For credit card debt repayment, consider the debt avalanche or snowball approach.

With the avalanche debt repayment method, you prioritize paying off your credit card with the highest interest rate first. Meanwhile, you’ll maintain minimum payments on all of your other debts. Once your highest-rate debt is paid off, you’ll roll those funds over to tackle your balance with the next highest interest rate.

The snowball method, on the other hand, is all about building up momentum toward debt payoff. Here, you pay as much as possible each month toward your credit card with the lowest outstanding balance, while making minimum payments on all of your other outstanding debts. When the smallest debt is paid off completely, repeat the process with the next smallest balance.

Debt Management Plan

If you’re still having trouble paying down your credit card either before or after you close the account, that could be a red flag signaling that you need help. In this case, consider reaching out to an accredited debt management counselor who can set you on the right path to credit debt insolvency.

In addition to helping you create a debt management plan, a credit counselor can help by negotiating a better deal on interest rates and lower monthly payments. That could result in paying down your credit card debt more quickly, which not only saves you money, but also helps protect your credit score.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

The Takeaway

If you decide to close your credit card account with a balance, it’s critical to do so in a way where your debt obligations are covered and your credit score is protected. The key to doing the job right is to work with your card company, keep a close eye on outstanding balances and payment deadlines, and work aggressively to pay your card debt down as quickly as possible.

Since closing a credit card can have consequences, it’s especially important to consider a credit card ‘s pros and cons carefully before you apply.

Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Can you close a credit card with a balance?

Closing a credit card with a balance is possible. However, you’ll still be responsible for the outstanding balance on the card, as well as any interest charges and fees.

Does it hurt your credit to close a credit card with a balance?

Closing your credit card with a balance remaining has the potential to impact your credit score. However, the exact implications for your score can vary depending on your overall credit profile and which credit scoring model is being used.

Is it better to close a credit card or leave it open with a zero balance?

That depends on your personal situation. Closing a card for good may impact your credit score, but you also won’t be able to use the card again and risk racking up unwanted debt in the process.

What happens if you close a credit card with a negative balance?

If you close a credit card with a negative balance, that means the card issuer owes you money instead of vice versa. In this situation, the card issuer will typically refund you that money before closing out the account.

How do I close a credit card without hurting my credit score?

You can mitigate the impacts of closing your account by paying off the balance on that account and all other credit card accounts you have. If you have $0 balances, then closing your account and losing that available credit won’t affect your credit utilization rate.

Photo credit: iStock/staticnak1983

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOCC-Q324-003

Source: sofi.com

Apache is functioning normally

July 31, 2024 by Brett Tams

Moving to Wisconsin offers a welcoming Midwestern charm with a mix of vibrant cities and picturesque rural landscapes. Known for its excellent schools, diverse job market, and rich cultural heritage, Wisconsin is a great place to call home. Whether you’re browsing homes for sale in Milwaukee, considering renting in Madison, or exploring houses for rent in Green Bay, here’s what you need to know before moving to Wisconsin.

Wisconsin at a glance

From the serene shores of Lake Michigan and Lake Superior to the rolling hills of the Driftless Area, you’ll find plenty of opportunities for adventure. Its central location in the Midwest enhances its appeal, providing residents with easy access to major cities like Chicago and Minneapolis. Wisconsin’s economy is robust, supported by thriving sectors such as manufacturing, agriculture, and healthcare, with major corporations like Harley-Davidson and Johnson Controls calling the state home.

The cultural landscape of Wisconsin is equally rich, featuring historical landmarks like the Wisconsin State Capitol and the vibrant arts scene in cities such as Milwaukee and Madison. The state is known for its eclectic food culture, including renowned cheese, craft beers, and distinctive regional specialties like bratwurst and cheese curds. While the cost of living can be high in some urban areas, more affordable places to live are available in towns like La Crosse and Kenosha. Whether you’re drawn to its lively cities or peaceful countryside, Wisconsin provides a multifaceted living experience, making it one of the best places to live in Wisconsin.

1. The winter weather is intense

Wisconsin’s winters are known for their severity, with temperatures often plunging well below freezing, frequently dropping to around -10°F to -20°F in the northern regions. Snowfall can be heavy, especially in these areas, where accumulations can exceed 100 inches annually. Winter weather conditions frequently lead to icy roads and challenging driving conditions, necessitating snow tires and regular snow removal. Living in Wisconsin means being ready for these extreme weather conditions and embracing the winter season with appropriate gear and activities.

Insider scoop: If you’re new to the area, try to familiarize yourself with local plow schedules and road maintenance updates to avoid travel disruptions.

2. The cost of living is generally lower in Wisconsin

Wisconsin offers a lower cost of living compared to many other states, making it an attractive option for those seeking affordability. In cities like Milwaukee, the median home sale price is $220,00, which is significantly lower than the national median of $442,479 along with major metropolitan areas on the coasts. Average rent prices for a one-bedroom apartment in Milwaukee are around $1,479 per month, while in Madison, they are about $1,655 per month. Utilities, groceries, and other daily expenses also tend to be more reasonable, with the cost of living in Green Bay being 8% lower than the national average.

This affordability extends to smaller towns and rural areas, such as Wausau, where the median home price is $223,000 and rental prices are $1,095 per month, offering even more pronounced cost savings.

3. There are diverse terrains here

Wisconsin has a diverse array of landscapes, from the rugged beauty of the Driftless Area with its unique topography, such as the scenic bluffs around the Wisconsin River, to the picturesque shores of the Great Lakes, including the stunning views from Door County. The state features lush forests like the Chequamegon National Forest, rolling hills such as those found in the Kettle Moraine State Forest, and numerous lakes and rivers, such as Lake Winnebago. This variety in terrain provides abundant opportunities for outdoor enthusiasts and nature lovers, from hiking and kayaking to hunting and bird-watching.

Travel tip: Consider exploring lesser-known spots like the Apostle Islands for a unique adventure or the Ice Age National Scenic Trail for an extended hike through diverse landscapes.

4. Known for the amazing local festivals

Wisconsin is known for its vibrant festival scene, which celebrates a wide range of interests and cultures. The Summerfest in Milwaukee, one of the largest music festivals in the world, features performances from major artists and local bands. The Wisconsin State Fair in West Allis showcases agriculture, local food, and entertainment. Additionally, unique festivals like the EAA AirVenture in Oshkosh highlight the state’s love for aviation and community gatherings, making local festivals a key aspect of Wisconsin’s cultural life.

If you’re planning on moving to Wisconsin, you’ll want to weigh the pros and cons of living in America’s Dairyland to learn what life is like.

5. Cheese and dairy is a big part of Wisconsin life

Wisconsin’s reputation as “America’s Dairyland” reflects its strong dairy industry and cheese-making traditions. The state is home to numerous cheese factories and dairies that produce a wide variety of cheeses, including cheddar, gouda, and Swiss. Local favorites include cheese curds, which are fresh and often served deep-fried as a snack. Dairy farming is a significant part of the state’s economy and culture, with annual events like the Wisconsin Cheese Festival celebrating the state’s rich dairy heritage.

Insider scoop: Don’t miss out on the opportunity to try the “squeaky” cheese curds fresh from the fryer, which are best enjoyed with a local craft beer.

6. Wisconsin has some of the highest taxes in the nation

Wisconsin’s tax structure includes relatively high property and income taxes, which can impact residents’ finances. The state has a progressive income tax rate with high brackets that can affect higher earners, while property taxes are among the highest in the Midwest. In fact, the property tax rate is 1.51%, the eighth-highest in the nation. These taxes support state and local services, but they can be a significant consideration for new residents. It’s crucial to budget for these taxes and understand their impact on your overall financial planning, especially if you’re considering transitioning from renting to owning a home.

7. The sports culture is a big deal

Sports play a central role in Wisconsin’s culture, with passionate fans supporting teams like the Green Bay Packers (NFL) and the Milwaukee Brewers (MLB). The Packers, in particular, have a storied history and a dedicated fan base, with Lambeau Field serving as a major sports landmark. College sports are also significant, with the University of Wisconsin-Madison Badgers competing in NCAA events. Whether it’s attending games, participating in local sports leagues, or following major teams, sports are a major part of community life in Wisconsin.

8. Wisconsin has a rich brewery scene

Wisconsin has a rich brewery scene with a long history of brewing excellence. Milwaukee, in particular, is known for its brewing heritage, with iconic breweries like Miller Brewing Company and modern craft breweries such as Lakefront Brewery offering a wide range of beers. The state’s craft beer scene is robust, with breweries across Wisconsin producing innovative and high-quality brews. Local beer festivals, brewery tours, and taprooms offer ample opportunities to explore and enjoy Wisconsin’s diverse beer offerings.

Insider scoop: Check out the Hop Passport program, which rewards you for visiting various breweries across the state, making it a fun way to explore local favorites and hidden gems.

9. The people here are very friendly

Wisconsinites are known for their friendly and welcoming nature, contributing to a warm and inviting community atmosphere. The state’s residents often exhibit a strong sense of neighborliness and community involvement, making it easier for newcomers to feel at home. Local gatherings, community events, and small-town charm enhance the sense of belonging and friendliness. This approachable and sociable attitude is a hallmark of life in Wisconsin, fostering a supportive and connected environment for new residents.

Methodology

Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.

Source: rent.com

Apache is functioning normally

July 30, 2024 by Brett Tams

Charleston, South Carolina, often hailed as one of the most charming cities in America, has a unique blend of historic allure and modern amenities. Known for its picturesque streets, southern hospitality, and culinary delights, Charleston offers a lifestyle that’s both relaxing and vibrant. However, like any city, it has its quirks and challenges. Not sure if Chucktown is for you? Read on to find out what to expect if you’re considering a move to the Charleston area in 2024.

You know it from: The Notebook, Dear John

Average 1 bedroom rent: $1,450 | Charleston apartments for rent, Charleston houses for rent

Average home price: $646,000 | Charleston homes for sale

Average cost of full-service moving services: $188/hr for 2 movers

Average cost to rent a moving truck: $19 – $39/day

Top industries: Trade, transportation & utilities, Government, Professional & business Services

Move here for: The beaches, the restaurants, and the beautiful architecture

Be sure to bring: Shoes you can wear on cobblestone streets, a white linen shirt

1. Hot humid summers and mild winters

Charleston enjoys a subtropical climate, with hot, humid summers and mild winters. Summer temperatures often soar into the 90s with high humidity, making air conditioning a necessity. Winters are generally mild, with temperatures rarely dipping below freezing. However, the city does experience occasional chilly spells and rare snowfall. Be prepared for sudden thunderstorms in the summer and the possibility of hurricanes during the Atlantic hurricane season.

Moving Tip: Charleston’s low sea-level means that some areas are prone to flooding in the heavy rains of spring and summer. If you are looking to purchase a house, make sure to do your research on flood plains.

2. Charleston’s culinary scene is world class

Charleston is a food lover’s paradise, boasting a diverse and vibrant culinary scene. From low country cuisine like shrimp and grits to high-end dining experiences at restaurants like Husk and FIG, there’s something for every palate. The city is also known for its bustling farmers’ markets, fresh seafood, and innovative chefs who blend traditional and modern flavors. Food festivals and events, such as Charleston Wine + Food, further enhance the city’s culinary reputation.

3. Southern hospitality is a thing here y’all

Charleston is known for its friendly locals and strong sense of community. Southern hospitality is evident in the warm greetings and helpful nature of residents. The city has numerous community events, festivals, and gatherings that foster a sense of belonging. From neighborhood block parties to city-wide celebrations like the Spoleto Festival USA, there’s always an opportunity to connect with others. This welcoming atmosphere makes it easy for newcomers to feel at home.

Moving Tip: Newcomers from other regions of the country should be aware that a lot of southern hospitality stems from long standing traditions around Southern etiquette and decorum. For a peek inside this world, Charleston Magazine has a revealing article about Southern manners.

4. Charleston’s beaches are stunning

Charleston is home to some of the most beautiful beaches on the East Coast. Popular spots like Folly Beach, Isle of Palms, and Sullivan’s Island offer pristine sand, clear water, and a variety of recreational activities. Residents enjoy beachcombing, surfing, fishing, and simply relaxing by the ocean. These coastal retreats are easily accessible from the city, providing a perfect escape from urban life and a great place to enjoy the natural beauty of the area.

5. Thriving arts and culture scene

Charleston has an active arts and culture scene, with numerous galleries, theaters, and museums. The Dock Street Theatre, one of America’s oldest, hosts a variety of performances, from plays to musicals. The Gibbes Museum of Art features an impressive collection of American art, while the Halsey Institute of Contemporary Art showcases modern works. The city’s cultural calendar is packed with events, including the world-renowned Spoleto Festival USA, which celebrates the arts.

6. Excellent education opportunities

Charleston offers a range of educational opportunities, from highly rated public and private schools to prestigious higher education institutions. The College of Charleston and The Citadel are two notable colleges in the area, providing quality education and contributing to the city’s youthful and intellectual vibe. There are also numerous specialized schools and programs that cater to various academic interests and career paths.

7. Outdoor recreation with a Low Country vibe

For those who love the outdoors, Charleston offers plenty of recreational activities. The city’s parks, such as Waterfront Park and Marion Square, provide beautiful green spaces for relaxation and exercise. The nearby Francis Marion National Forest and various nature preserves offer hiking, biking, and birdwatching opportunities. Water sports, including kayaking, paddleboarding, and boating, are popular due to Charleston’s coastal location and numerous waterways.

8. Historic streets + Rush hour = Traffic jams

Charleston’s growing population has led to increased traffic congestion, particularly during peak hours. The city’s layout and historic streets can make driving challenging, and finding parking downtown can be difficult. Public transportation options include the Charleston Area Regional Transportation Authority (CARTA) buses and the free DASH shuttles in the historic district. Biking and walking are popular alternatives for getting around, especially in the downtown area.

9. Housing costs have grown tremendously but are still around the national average

Charleston’s cost of living is right around the national average, particularly in terms of housing. The city’s popularity has driven up real estate prices, making it a competitive market for buyers and renters. However, there are a variety of neighborhoods to choose from, each with its own character and price range. Areas like West Ashley and James Island offer more affordable options, while Downtown and Mount Pleasant are known for their higher price points.

Moving Tip: While housing costs are around average, the cost of utilities in Charleston is more than 20% higher than the national average so be sure to budget accordingly!

10. Historic charm and beautiful architecture

Charleston is renowned for its well-preserved historic district, featuring cobblestone streets and antebellum mansions. The city’s architectural beauty, including landmarks like the Rainbow Row and The Battery, makes it a picturesque place to live. Many homes and buildings are designated historic sites, which can mean strict regulations on renovations and upkeep. This historic charm is a significant draw for residents and visitors alike, contributing to Charleston’s unique character.

Moving Tip: There is no question that Charleston’s antebellum architecture is also a reminder of the dark side of the antebellum South. Today, Charleston is a progressive and forward looking city with a diverse population of residents who move there from all over the world.

11. Beautiful parks and green spaces

Charleston is home to numerous parks and green spaces that offer residents a place to relax and enjoy nature. Hampton Park, one of the largest, features walking trails, gardens, and a lake. White Point Garden, located at the southern tip of The Battery, offers stunning views of the harbor and historic cannons. These green spaces provide a peaceful retreat from urban life and are perfect for picnics, walks, and outdoor activities.

12. There’s always something to do in the evenings

Charleston offers a lively nightlife scene, with a variety of bars, clubs, and live music venues. King Street is a popular destination for nightlife, featuring trendy bars, rooftop lounges, and dance clubs. The city’s music scene is diverse, with venues like the Charleston Music Hall and The Pour House hosting performances by local and national artists. Comedy clubs, theaters, and late-night eateries add to the vibrant entertainment options available.

13. The job market is robust with growth in diverse industries

Charleston has a growing economy, with key industries including tourism, healthcare, manufacturing, and technology. Major employers in the area include Boeing, Roper St. Francis Healthcare, and the Medical University of South Carolina. The city’s port is also one of the busiest in the nation, contributing to economic growth. While job opportunities are plentiful, the competition can be stiff, so having a solid plan for employment is crucial.

14. Charleston’s unique festivals and events

Charleston hosts a variety of unique festivals and events throughout the year, celebrating its culture, history, and community. The Charleston Wine + Food Festival, Charleston Fashion Week, and the MOJA Arts Festival are just a few examples. These events attract visitors from around the world and offer residents a chance to enjoy food, fashion, music, and art. The city’s festive spirit and diverse event calendar make it a lively place to live and explore.

Methodology: Average rent prices sourced from Rent.com July 2024. Home prices sourced from Redfin July 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from CHS Today.

Apache is functioning normally

July 30, 2024 by Brett Tams

A payroll tax in Washington state that is designed to establish a fund for older residents’ long-term care needs could be undone by voters this fall through a ballot initiative.

“WA Cares” is a payroll tax that is described as a “public long-term care insurance program” in which all working Washington residents contribute 0.58% of each paycheck to the associated fund. After 10 years of contributions, a long-term care benefit is accessible so long as there is an associated care need when requesting the benefit.

Those who qualify can begin accessing the benefit in July 2026, and they can access a benefit of up to $36,500 adjusted with inflation. Residents born before 1968 typically “have lower contribution requirements and benefits,” according to the state’s WA Cares Fund website.

But the mandatory payroll tax — created as part of the program by the Washington Legislature in 2019 — now faces an “existential threat” to its existence, according to advocates. A successful signature-gathering campaign has added a new voter initiative to the state’s ballot in the fall. Voters can choose to make the payroll tax voluntary.

Should that initiative be approved by Washington voters, what has been described as a “first-of-its-kind” effort to tackle issues of financial unpreparedness for long-term care needs by older Americans could be dealt a blow it would not recover from, according to advocates who wish to keep the payroll tax mandatory.

“Essentially, it’s framed as a choice, but it really kills the program,” according to state Rep. Nicole Macri (D) in a February interview with The Seattle Times. “[That’s] because like any other social insurance program like Medicare or Social Security, it depends on a broad, extremely broad, base of contributors in order for everybody to be eligible for a benefit.”

Recent polling to gauge voter interest in the initiative is not looking favorable for keeping the payroll tax mandatory. In polling conducted for the Seattle Times, 52% of likely voters would support the initiative to make the tax optional. Another 27% of likely voters said they would vote “no” on such an initiative, while 22% remain undecided.

While an overwhelming majority of Washington Republicans support the initiative (63%), so do a majority of Democrats (53%). The lowest share of support from those who identified their political affiliation came from Independents (43%).

Proponents for the campaign seeking to persuade voters to vote “no” on the initiative — and keep the payroll tax mandatory — expressed concerns about the poll’s language.

Long-term care is seen as a key attribute to allow seniors to age in place in their homes. A study by researchers at Rutgers University in New Jersey earlier this year found that home-based care is a leading outcome for older Americans, particularly as the U.S. population grows older more quickly.