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Speaker 1: Hey, Hey, ba fam, It's Mandy here for another episode

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Speaker 1: of the Baqa the Baqa. I hope you guys are

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Speaker 1: having a wonderful start to the month. I am so

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Speaker 1: excited to be here taking all of your wonderful questions.

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Speaker 1: Hit us up at Browndambition podcast dot com. Let that

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Speaker 1: be the first stop on your tour of our website

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Speaker 1: or brand new website. If you haven't seen it, please

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Speaker 1: check it out. It's beautiful if I do say so myself.

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Speaker 1: And while you're there, ask us anything. You can email

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Speaker 1: us at brand Ambition Podcast. Through the website. You can

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Speaker 1: find out how to find us on Instagram through the website,

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Speaker 1: so bronambitionpodcast dot com. I cannot wait to get your

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Speaker 1: questions anything career of money. I am your girl and

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Speaker 1: thank y'all again for the continued support. What else is

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Speaker 1: happening in my world? Y'all know I'm coming up on

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Speaker 1: a year of Mandy money. I can't believe it. Oh man,

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Speaker 1: it's almost been a year. I gotta figure out how

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Speaker 1: to plan a party. If y'all have any ideas of

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Speaker 1: how to celebrate a year in business, just let me know,

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Speaker 1: because my my deep you know, Leo Hart here the

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Speaker 1: lion wants to dance. Okay, I want a party. I

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Speaker 1: love an affair. I love to have a good time.

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Speaker 1: So I'm just thinking back on a year in business.

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Speaker 1: It's tax season right now, and for any entrepreneurs out

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Speaker 1: there who are like sweating it, you know, first quarter

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Speaker 1: taxes and then closing out taxes for last year. My

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Speaker 1: accountant is my secret weapon. And I'm not even going

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Speaker 1: to sit here and pretend like I know a bunch

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Speaker 1: of stuff and can and give lots of advice on

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Speaker 1: how to, you know, manage your taxes this time of year.

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Speaker 1: But my biggest piece of advice is to don't stick

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Speaker 1: her head in the sand. Actually go ahead and hire someone.

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Speaker 1: It is worth the money, not only to find an accountant,

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Speaker 1: but also to find a bookkeeper. Even in the first

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Speaker 1: quarter of this year, I didn't think I did anything

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Speaker 1: that funky, But when I tell you, my bookkeeper had

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Speaker 1: about twelve thirteen different questions for me to answer and

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Speaker 1: line items and my expenses and my income to figure out.

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Speaker 1: Oh my goodness. So I'm so glad I'm getting on

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Speaker 1: top of that. Where did I find my bookkeeper and

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Speaker 1: my accountant? I asked a friend. I asked a fellow

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Speaker 1: business owner, you know, where do you do your taxes?

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Speaker 1: And I asked someone local so that I could find

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Speaker 1: someone local, and fortunately I interviewed them both and their

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Speaker 1: husband and wife duo, and they are fabulous. So if

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Speaker 1: you're someone who's whether you've just launched a business or

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Speaker 1: you've been in business for a couple of years, I'm

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Speaker 1: talking to you, nubie entrepreneurs like myself, go ahead and

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Speaker 1: outsource that and get some help. It makes me feel

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Speaker 1: so much more at ease, and it makes me not

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Speaker 1: fear that I'm going to have a nasty letter from

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Speaker 1: the Irs hitting my mailbox any day now telling me

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Speaker 1: that I owe them eleveny million dollars. Okay, so happy

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Speaker 1: tax season to all of y'all. Also, my goodness, it's

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Speaker 1: been almost a year in business, and y'all know, when

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Speaker 1: I started Mandy Money, I created my own website myself.

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Speaker 1: Squarespace is a sponsor of the podcast, but even before

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Speaker 1: they became a sponsor, I was a fan. I used

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Speaker 1: Squarespace to create mymandymoney dot com website, and I have

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Speaker 1: to let y'all know there is a whole newmandymoney dot

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Speaker 1: com for y'all to check out. You can check it

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Speaker 1: out mandymoney dot com. It's Mandy with an I. I

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Speaker 1: partnered with the same badass web designer who did the

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Speaker 1: new brand Ambition podcast dot com. Her name is Shirleyansley.

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Speaker 1: She is amazing black woman, mama partner in crime for me. Now,

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Speaker 1: for all my website needs check out, I'll put a

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Speaker 1: link to her website in our show notes. And I

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Speaker 1: told Shirley I was going to do it, and I

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Speaker 1: was like, you're probably not prepared for lots and lots

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Speaker 1: of people to want to work with you. I think

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Speaker 1: she's already sold out and booked for the next few months.

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Speaker 1: But she deserves all of her success. She's great at

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Speaker 1: what she does, and as a fellow mom and entrepreneur,

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Speaker 1: I gotta support my girl, Shirley. So I will put

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Speaker 1: a link to her website. She is phenomenal and I'm

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Speaker 1: so happy with the new look at mandymoney dot com.

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Speaker 1: All right, Well, with that being said, let me get

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Speaker 1: on into the inbox and see what kind of questions

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Speaker 1: y'all have today. All right, so today's show is going

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Speaker 1: to be all about money, honey. Our first question comes

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Speaker 1: from an anonymous listener who had the courtesy of giving

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Speaker 1: me her own pseudonym, and I'm a fan Balance transfer Bell. Hello,

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Speaker 1: balance transfer Bell, let's talk. My question is, with interest

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Speaker 1: rates going up now that the FED is working on inflation,

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Speaker 1: should I lock in the zero percent balance transfer rates

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Speaker 1: that my credit cards are offering with a three percent

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Speaker 1: transfer fee or wait until the next offer comes along.

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Speaker 1: Here's some context. I've been for the last two years

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Speaker 1: rolling over approximately sixty thousand dollars of debt on credit cards.

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Speaker 1: I have been under employed during COVID and in a

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Speaker 1: precarious living situation. In order to keep all those plates spinning,

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Speaker 1: I decided it was better to borrow the money from

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Speaker 1: myself and deal with the three percent balance transfer fees

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Speaker 1: and make sure all my bills like student loans, card notes,

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Speaker 1: rent were paid on time. As a result, my credit

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Speaker 1: isn't great because my balance to limit ratio are high,

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Speaker 1: but I have zero issue paying my bills on time.

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Speaker 1: I've been doing this now for two years, and I

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Speaker 1: honestly believe this is the year when I'm finally going

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Speaker 1: to get a decent job and be able to pay

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Speaker 1: down this loan. But a few additional things about this

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Speaker 1: sixty K worth of credit card debt that I have

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Speaker 1: been rolling along, so they're spread against different cards, and

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Speaker 1: they all have different terms that are up at different times.

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Speaker 1: I know I need to move the money before those

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Speaker 1: terms expire so I don't get hit with additional interest.

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Speaker 1: But the offers come when they come, so there's no

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Speaker 1: guarantee that a new zero percent balance transfer offer will

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Speaker 1: come in time. Also, I should let you know that

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Speaker 1: I put a large amount of money that I had

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Speaker 1: sitting in savings in the stock market. I didn't need

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Speaker 1: to use all the money, but I wanted to make

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Speaker 1: sure I could make my minimum payments and have an

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Speaker 1: emergency fund. I want to leave that money in the

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Speaker 1: market in order to not take a loss. I know

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Speaker 1: it's a lot, but I want to leave my money

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Speaker 1: in the market, invest and pay off these loans in

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Speaker 1: the next year and a half. But I want to

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Speaker 1: know if the next balance transfer offer that pops up

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Speaker 1: overlaps with my zero percent offer, should I jump at it,

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Speaker 1: because even with the added cost of a balance transfer fee,

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Speaker 1: it could be a safer bet since rates are finally rising.

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Speaker 1: Let me know what you think. I appreciate all that

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Speaker 1: you do, oh Man, Balance transfer bell, this is a doozy.

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Speaker 1: So sixty thousand dollars worth a credit card debt, you know,

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Speaker 1: I got to give you major props because you actually

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Speaker 1: took advantage of a very useful tool via a zero

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Speaker 1: percent balance transfer offer, to keep that sixty k from

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Speaker 1: spiraling out of control. It's a lot of credit card debt,

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Speaker 1: and because it's spread across different cards, it's still a

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Speaker 1: lot to juggle. Yeah, to keep up with those term

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Speaker 1: expiration dates. I hope you're reading the fine print because

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Speaker 1: you could get a hit with additional interest fees, but

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Speaker 1: you can also have deferred interest clause, which would actually

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Speaker 1: go all the way back to the beginning and when

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Speaker 1: you open those credit cards and smack all that interest

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Speaker 1: onto your balance, so it would be like you were

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Speaker 1: paying interest all along. So you're left not only with

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Speaker 1: those interest charges, but also way more debt than you

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Speaker 1: actually started off with. My biggest concern, and my question

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Speaker 1: is have you actually been making payments on these credit

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Speaker 1: cards or just shuffling them around, Because shuffling them around

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Speaker 1: is savvy, but if you're not actually putting a dent

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Speaker 1: in them, then you're really just kicking the can down

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Speaker 1: the road and you're creating more stress on yourself, and

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Speaker 1: like you said, it's stopping you from being able to,

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Speaker 1: you know, make investing and saving decisions that could really

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Speaker 1: build help build you wealth in the future. I'm fearful

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Speaker 1: that if you don't start tackling this sixty thousand dollars

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Speaker 1: worth of debt, that it will get to the point

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Speaker 1: where you kind of reach your balance transfer cliff. I mean,

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Speaker 1: there are some you know, balance transfers are not a

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Speaker 1: total panacea for credit card debt, right, So there's a

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Speaker 1: couple of limitations. One, you typically cannot transfer a balance

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Speaker 1: from a credit card at a certain bank to the

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Speaker 1: same bank. So that means if you've got ten dollars

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Speaker 1: on a Chase credit card, even if Chase has a

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Speaker 1: zero percent balance transfer offer, you can't transfer that balance

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Speaker 1: onto a Chase credit card. You have to go to

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Speaker 1: another issue or bank and find a zero percent balance

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Speaker 1: transfer offer from them. There also may be limitations on

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Speaker 1: how often you can transfer balances, you know, at one

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Speaker 1: bank to the other. So definitely want to read that

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Speaker 1: fine print. You've put a bunch of money into the market,

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Speaker 1: and I get what you're saying. You know, you don't

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Speaker 1: want to take it out. You don't want to lose

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Speaker 1: and miss out on those gains. And I think that

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Speaker 1: that is, you know, it makes a lot of sense.

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Speaker 1: But the fact that you were able to invest in

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Speaker 1: the market tells me that you've got extra money and

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Speaker 1: extra funds that you could be using to pay down

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Speaker 1: this credit card debt. So I would think a little

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Speaker 1: bit differently about how much money you're putting toward your

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Speaker 1: investments and instead start siphoning some of that money to

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Speaker 1: your credit card debt. That's sixty K. Like I said,

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Speaker 1: you're managing it right now, but it's like spinning plates,

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Speaker 1: and you keep not only spinning plates, but you're like

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Speaker 1: doing it on your tippy toes. And then you're going

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Speaker 1: to try to like lift one foot off the floor

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Speaker 1: and you're just making it. It's getting harder and harder.

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Speaker 1: Then you're going to be like, oh, I can do it,

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Speaker 1: but I can put one hand behind my back. Eventually

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Speaker 1: it's all going to come crashing down. So that's why

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Speaker 1: I want you to come up with a plan that

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Speaker 1: lets you put additional funds toward that debt. Now I

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Speaker 1: know that this is brown ambition, and we talk about

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Speaker 1: the importance of investing and wealth building. Sure, but I

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Speaker 1: don't want you to lose sight of that credit card debt,

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Speaker 1: because honestly, paying down debt can also be a form

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Speaker 1: of investing, especially if that debt is going to be

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Speaker 1: costing you or has the potential to be costing you

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Speaker 1: down the line. So maybe what you could be doing

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Speaker 1: while you're enjoying the remaining terms of your zero percent

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Speaker 1: balance transfer options that you've got is to start creating

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Speaker 1: a bit of a cash nest eck that you can

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Speaker 1: use to start paying down those credit cards sooner rather

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Speaker 1: than later. And maybe whatever you've put into the stock

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Speaker 1: market so far, you kind of let that sit, and

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Speaker 1: you say, cool, I put this wind far into the

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Speaker 1: stock market. I'm going to let that rock and I'm

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Speaker 1: not going to touch it. That's fine, but you've got

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Speaker 1: to throw everything you've got left at these credit cards. Now.

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Speaker 1: You talk about zero percent balance transfers also not always

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Speaker 1: coming around every day of the week. While it's true,

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Speaker 1: especially if banks know, and they always have a way

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Speaker 1: of knowing, don't they. If you're someone who's likely to

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Speaker 1: take advantage of balance transfer offers, I imagine you get

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Speaker 1: a lot of those offers in your email or in

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Speaker 1: your old snail mail through the mailbox. That being said,

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Speaker 1: you don't always have to wait for an offer to

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Speaker 1: come across your you know, your inbox in order to

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Speaker 1: take advantage. You can actually use sites like nerd. While

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Speaker 1: at Magnify money, just do a quick Google search to

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Speaker 1: see what banks out there are offering zero percent balance

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Speaker 1: transfer cards right now, and you can take advantage of those,

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Speaker 1: you know, if you qualify. I'm actually really impressed that

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Speaker 1: you say you've managed to maintain such a high credit

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Speaker 1: score even though you're maintaining pretty high balances. And that's

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Speaker 1: probably due to the fact that, like you said, you

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Speaker 1: haven't been missing payments because you've been set enough to

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Speaker 1: take all those spinning plates and move them around strategically

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Speaker 1: to different, various zero percent balance transfer options. That's super savvy.

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Speaker 1: But how long can you keep that up? Sure, if

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Speaker 1: you see a zero percent balance transfer offer and it's

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Speaker 1: going to give you and buy you more time, and

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Speaker 1: it's a smart way to you know, offload some of

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Speaker 1: that debt and save you what interest, even though you are,

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Speaker 1: like you said, paying a balance transfer fee. Okay, fine,

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Speaker 1: but what are you really going to be doing in

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Speaker 1: the long term? Like, what's the long term strategy. I

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Speaker 1: am so excited and I'm hopeful too that you'll find

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Speaker 1: a job that's going to increase your income to help

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Speaker 1: you pay down that debt. I really hope that happens.

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Speaker 1: But if it doesn't, or let's say you even do

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Speaker 1: get that job, but you're not able to put as

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Speaker 1: much as you want toward your debt, what are the

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Speaker 1: sources of income can you be bringing in? You know,

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Speaker 1: are there any ways that you can be freelancing or

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Speaker 1: bringing an additional income to help tackle that debt? And

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Speaker 1: if a balance transfer doesn't sound like something that you

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Speaker 1: can keep up for much longer, you could consider taking

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Speaker 1: on a debt consolidation loan at a credit union or

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Speaker 1: an online lender. Yes, it's not the juicy zero percent

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Speaker 1: interest offer that you may get from credit cards, but

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Speaker 1: it gives you more peace of mind because it's a

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Speaker 1: fixed interest rate loan, meaning it's not going to go up.

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Speaker 1: You mentioned the FED has been raising rates to combat inflation,

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Speaker 1: which it does. That's the whole point of the FED,

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Speaker 1: which means that credit card debt and other types of

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Speaker 1: loans can get more expensive, So it can be nice

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Speaker 1: to lock in a fixed interest rate through a debt

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Speaker 1: consolidation loan like a personal loan through a credit union

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Speaker 1: or a lender, because at least then you know this

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Speaker 1: rate is my rate. No matter what the FED does,

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Speaker 1: I'm going to get this juicy, great rate. And because

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Speaker 1: you've got decent credit, you know your chances of getting

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Speaker 1: one of the lower rates is fairly high. I mean,

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Speaker 1: obviously I don't know all of your information, but let's

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Speaker 1: just assume it is. So look into that fixed rate,

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Speaker 1: fixed term personal loan. And by fixed term, I mean

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Speaker 1: they're going to give you a loan and say you're

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Speaker 1: going to owe this this your monthly payment for the

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Speaker 1: next five to seven years or whatever the term of

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Speaker 1: your loan is. And then you always know what your

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Speaker 1: monthly payment is going to be. And because it's a

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Speaker 1: fixed rate loan, you know the rate is not going

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Speaker 1: to change. So as much as balance transfer cards are

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Speaker 1: a good option, they are a band aid, and I

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Speaker 1: think a long term debt payoff solution like a debt

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Speaker 1: consolidation loan can make some sense. But because balance transfers

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Speaker 1: are so good and you got your zero percent offer, hey,

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Speaker 1: you've already proven that you can multitask like no other

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Speaker 1: like women are freaking amazing at multitasking. I just know

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Speaker 1: there's a lot of men out there who probably couldn't

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Speaker 1: not to it. I know men are not a monolith,

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Speaker 1: but to manage all those different cards and all those

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Speaker 1: different term limits and balance transfer offers like that is

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Speaker 1: no small feat. So you know, I commend you for that,

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Speaker 1: and I say, as long as you can keep it

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Speaker 1: going and you're not, you know, losing sleep and your

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Speaker 1: eyes are not spinning out of your head, you know,

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Speaker 1: continue taking advantage of those zero percent balance transfer offers.

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Speaker 1: As long as you can get them, you can qualify them.

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Speaker 1: But when it starts to look like you're gonna need

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Speaker 1: a way to help pay off some of this debt

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Speaker 1: beyond balance transfers, you know, consider a debt consolidation loan.

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Speaker 1: Consider starting a relationship with a credit union that will

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Speaker 1: also help improve your credit. I know you said your

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Speaker 1: credit's pretty decent, but with your high utilization rates on

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Speaker 1: credit cards, you know, that's a double whammy for your

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Speaker 1: credit score. Not only is a high utilization gonna diminish

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Speaker 1: your credit score because it's like the second biggest factor

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Speaker 1: of your credit score, that high utilization rate, but it's

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Speaker 1: the types of debt that you have too. It's the

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Speaker 1: revolving credit card debt, and credit scoring models tend to

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Speaker 1: favor installment loans, which like a debt consolidation loan, that's

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Speaker 1: an installment loan versus high interests revolving credit cards. So

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Speaker 1: something to think about as well for the long term.

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Speaker 1: But in the meantime, you're kind of a I'm gonna

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Speaker 1: change your name from balance Transfer Bell to balance transfer Badass. Okay,

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Speaker 1: thank you so much for sharing your question. That was

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Speaker 1: a juicy one. Let me take a quick break. I

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Speaker 1: will be right back with more of your question. Hey, hey,

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Speaker 1: all right, I am back with another credit score question.

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Speaker 1: I love them. Keep them coming, y'all. Brandimissionpodcast dot com

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Speaker 1: send us all of your questions. Another listener who'd like

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Speaker 1: to remain anonymous, I'm gonna call her. We had balance

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Speaker 1: Transfer Bell slash balance Transfer Badass, so I'm gonna call

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Speaker 1: her Credit Queen, Credit Queen. Hello, thank you for your question.

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Speaker 1: Credit Queen says, I am paying down my debt and

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Speaker 1: I've paid down twenty thousand dollars with high interest credit

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Speaker 1: card debt. Woho, that is amazing. I'm about to tackle

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Speaker 1: the highest balance I have yet, thirty four thousand dollars

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Speaker 1: on a credit card with a thirty eight thousand dollars

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Speaker 1: credit limit. Yikes. Overall, my credit utilization rate is sixty

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Speaker 1: percent with all the other open credit lines that I have. Again,

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Speaker 1: all the other credit cards are down to zero. This

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Speaker 1: is the last one I have left, thirty four K

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Speaker 1: on a thirty eight K credit limit card. My question

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Speaker 1: is should I close down this very high balance card

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Speaker 1: and with a high credit livet. I've already cut up

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Speaker 1: the card. I'm working on my money habits and my

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Speaker 1: plan so that I'm no longer putting expenses on credit.

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Speaker 1: But with closing the card, affect my credit or make

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Speaker 1: it better since my credit utilization will technically be better,

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Speaker 1: I'm paying off this card. I've never been laid on

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Speaker 1: the payments. Also, I think I want to look into

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Speaker 1: taking a personal loan to pay it off with a

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Speaker 1: better interest rate and then close the card. Thanks for

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Speaker 1: your help, ooh, this is a perfect combo question to

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Speaker 1: go along with our question in the first half of

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Speaker 1: the show. First and foremost, congratulations, paying down twenty thousand

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Speaker 1: dollars of high interest credit card debt is no small

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Speaker 1: feed so I am giving you all the snaps, my friend,

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Speaker 1: all right, quit credit queen. So you got thirty four

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Speaker 1: K and a thirty eight K credit card. The fact

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Speaker 1: that you know enough to understand how to calculate your

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Speaker 1: credit utilization rate tells me I am not dealing with

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Speaker 1: a newbie here. You actually know something about how credit

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Speaker 1: scores are determined and how power they can be. So absolutely,

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Speaker 1: having such a high balance on this credit card could

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Speaker 1: really be hurting your credit score. I mean, you have

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Speaker 1: almost one hundred percent balance used on one credit card,

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Speaker 1: but you have saved yourself from having terrible credit, it

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Speaker 1: looks like, by having additional lines of credit. So the benefit,

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Speaker 1: while we're seeing here from this your own example, is

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Speaker 1: the benefit of keeping credit cards open, because if you

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Speaker 1: had closed down those other credit cards as you pay

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Speaker 1: them off, then you'd be left with like a ninety

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Speaker 1: nine percent utilization rate right now, and your credit score

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Speaker 1: would totally tank, because that is the second most important

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Speaker 1: scoring factor apart from making on time payments, which is

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Speaker 1: great to hear that you've been doing that as well,

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Speaker 1: but utilization rate is the second biggest reason, or second

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Speaker 1: biggest factor in determining your credit score. Now because of

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Speaker 1: those other lines of credit. Like you said, that thirty

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Speaker 1: four k is actually only sixty percent of your total

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Speaker 1: credit limit across all your credit cards, which is really

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Speaker 1: savvy to understand. That's because credit scoring models, when they

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Speaker 1: determine utilization rate, they're not just looking at the utilization

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Speaker 1: rate per individual card, but they're adding up the total

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Speaker 1: available limit across all your credit cards and then adding

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Speaker 1: up the total balance across all your cards, and that's

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Speaker 1: how they're getting to utilization rate. Okay, so you've already

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Speaker 1: proven by your own example the power and the positive

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Speaker 1: side of keeping credit cards open. What will happen if

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Speaker 1: you were to pay off this thirty four k and

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Speaker 1: then cut up that and get rid of and close

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Speaker 1: that thirty eight thousand dollars line of credit is that

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Speaker 1: it could make it more difficult for you to maintain

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Speaker 1: a low utilization rate in the future, right, so you

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Speaker 1: won't have that quote unquote. It's hard to call a

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Speaker 1: big fat credit limit a safety net because really it's

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Speaker 1: almost like it's like, I don't know, it's like putting

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Speaker 1: a for me as a as a person who struggles

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Speaker 1: with like eating and eating, you know, binge eating Sometimes

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Speaker 1: like It's like putting a big bag of potato chips

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Speaker 1: next to me after a long day of work and

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Speaker 1: kind of expecting me to not devour the entire thing

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Speaker 1: in five minutes. Right, So it's a tempting line of credit.

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Speaker 1: It's like, oh, use me, I'm here. You can't afford it, Oh,

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Speaker 1: just put it on this thirty eight thousand dollars credit limit.

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Speaker 1: It's just it's thirty eight thousand dollars. What's a couple

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Speaker 1: thousand dollars? You know, So it's tempting you. But what's

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Speaker 1: crucial to me that you've said in your question is

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Speaker 1: that you're actually working on your money mindset and building

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Speaker 1: smarter habits so that you won't put things on credit

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Speaker 1: if you trust yourself, and only you can answer this, Okay,

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Speaker 1: credit queen, Only you can decide if you trust yourself

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Speaker 1: enough to keep that credit line open because you know

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Speaker 1: it'll help you with the utilization rate, and you know

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Speaker 1: that you know you'd like to have a longer credit

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Speaker 1: history because the length and age of your credit is

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Speaker 1: also a small but powerful factor in your overall credit score.

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Speaker 1: And you know that, and you're like, I'm going to

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Speaker 1: keep this open because it's actually benefiting me to have

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Speaker 1: it open. However, you know yourself very well, well, you

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Speaker 1: know how you racked up all this credit debt in

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Speaker 1: the first place. I know you say you're, you know,

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Speaker 1: putting some new mindsets in place and trying to you know,

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Speaker 1: get your spending under control and all of that. But

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Speaker 1: at the first sign that you feel tempted to start

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Speaker 1: using that line, you know, you may want to go

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Speaker 1: against what logic and reason says and actually close the card.

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Speaker 1: I have let myself credit cards close if I felt

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Speaker 1: like I was going to be tempted to use them,

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Speaker 1: and if I felt like I had enough of a

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Speaker 1: credit limit across other cards that yeah, it was going

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Speaker 1: to decrease my overall credit limit, but I still had

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Speaker 1: other cards that I could lean on, and I wasn't

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Speaker 1: going to be, you know, messing myself up too, too

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Speaker 1: terribly badly. So sometimes it's okay to let your credit

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Speaker 1: cards close. I'm just going to go out there and

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Speaker 1: say it, because conventional wisdom and logic and reasoning. This

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Speaker 1: is why they call it personal finance. You know, sure,

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Speaker 1: there's the right or quote unquote the right thing to

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Speaker 1: do and the logical thing to do, but you also

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Speaker 1: have to know your personality and your approach to money,

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Speaker 1: and what your triggers and your weaknesses are. This is

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Speaker 1: the reason why I don't keep big bags of chips

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Speaker 1: in my house. You know why, because I know myself

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Speaker 1: and all it takes is one bad day at work

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Speaker 1: or one argument with my partner, and it's just like

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Speaker 1: a bag of chip's gonna solve my problems, and I'm

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Speaker 1: gonna feel like a sack of crap after, you know

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Speaker 1: what I mean. So I know myself, right, I think

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Speaker 1: you should get to know yourself too. Now it could

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Speaker 1: be a case where you paid on the credit card,

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Speaker 1: and let's be clear, you haven't paid it off yet,

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00:21:27,960 --> 00:21:29,960
Speaker 1: so let's not get too ahead of ourselves, like, just

431
00:21:29,960 --> 00:21:33,159
Speaker 1: focus on paying it down. But when you get to

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00:21:33,200 --> 00:21:35,000
Speaker 1: the point where you've paid it down, then you can

433
00:21:35,119 --> 00:21:37,480
Speaker 1: kind of see yourself and you know, be real with

434
00:21:37,520 --> 00:21:40,080
Speaker 1: yourself and say do I need this credit line? Are

435
00:21:40,119 --> 00:21:43,320
Speaker 1: my other credit cards sufficient? Okay? Let me close it down.

436
00:21:43,720 --> 00:21:45,760
Speaker 1: So what you can expect if you were to close

437
00:21:45,800 --> 00:21:47,760
Speaker 1: it down is would you take a hit to your

438
00:21:47,800 --> 00:21:51,040
Speaker 1: credit potentially A couple of reasons why we just talked

439
00:21:51,040 --> 00:21:56,040
Speaker 1: about them, right, you are immediately decreasing your total available limit. Now,

440
00:21:56,400 --> 00:21:59,119
Speaker 1: the beauty of your situation is that those other credit

441
00:21:59,119 --> 00:22:02,679
Speaker 1: cards you have have a zero balance. So even if

442
00:22:02,680 --> 00:22:05,480
Speaker 1: you're going to close this card, your utilization rate should

443
00:22:05,480 --> 00:22:08,800
Speaker 1: still be zero, right, so you're not actually hurting yourself.

444
00:22:09,080 --> 00:22:10,880
Speaker 1: Where you might get dinged, and what you probably will

445
00:22:10,920 --> 00:22:13,399
Speaker 1: get dinged is your average age of credit if that

446
00:22:13,480 --> 00:22:16,119
Speaker 1: credit card is one of your older accounts. So you

447
00:22:16,160 --> 00:22:18,480
Speaker 1: can do a quick Actually, credit Karma has a cool

448
00:22:18,520 --> 00:22:21,160
Speaker 1: tool for this. You can actually do a credit simulate,

449
00:22:21,640 --> 00:22:24,920
Speaker 1: what's it called credit score a simulator, and you can

450
00:22:24,960 --> 00:22:27,520
Speaker 1: actually see with you r if you load your credit

451
00:22:27,560 --> 00:22:29,720
Speaker 1: accounts into there, you can see, well, what if I

452
00:22:29,760 --> 00:22:32,040
Speaker 1: close this one? What if I get a credit limit

453
00:22:32,119 --> 00:22:34,240
Speaker 1: decrease or increase, And you could actually see what the

454
00:22:34,280 --> 00:22:36,920
Speaker 1: effect could be to your score, and then you could see, okay,

455
00:22:36,960 --> 00:22:40,720
Speaker 1: maybe it's like twenty thirty points whatever if my average

456
00:22:40,760 --> 00:22:43,800
Speaker 1: age of credit is reduced by closing this card, but

457
00:22:44,000 --> 00:22:46,840
Speaker 1: your credit score will bounce back. It is not like

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00:22:46,880 --> 00:22:51,040
Speaker 1: I said, It is not a like a stagnant sort

459
00:22:51,040 --> 00:22:55,080
Speaker 1: of score. It's always moving and changing and flowing. You know,

460
00:22:55,280 --> 00:22:58,920
Speaker 1: It's a living, breathing thing. And as Tiffany always says,

461
00:22:58,960 --> 00:23:01,600
Speaker 1: it's basically your g if you look back at all

462
00:23:01,680 --> 00:23:04,960
Speaker 1: your credit history and your you know history, personal finance

463
00:23:05,000 --> 00:23:07,760
Speaker 1: and loans and all that, it's a record you know

464
00:23:07,840 --> 00:23:10,679
Speaker 1: from your whole credit life. So as long as on

465
00:23:10,760 --> 00:23:14,879
Speaker 1: the whole you've been relatively on time, relatively you know,

466
00:23:14,960 --> 00:23:18,080
Speaker 1: good behavior, then your credit score should always come back.

467
00:23:18,119 --> 00:23:20,520
Speaker 1: It should bounce back. So in your case, it may

468
00:23:20,560 --> 00:23:22,520
Speaker 1: make sense for you to close that card and just

469
00:23:22,560 --> 00:23:24,280
Speaker 1: be done with it and just put it in the

470
00:23:24,280 --> 00:23:26,800
Speaker 1: past behind you, even if you take a temporary hit

471
00:23:26,840 --> 00:23:29,119
Speaker 1: to your credit score. You have to do what works

472
00:23:29,119 --> 00:23:33,359
Speaker 1: best for you. But honestly, this is like you're in

473
00:23:33,400 --> 00:23:36,640
Speaker 1: the beautiful position I think of kind of obsessing over

474
00:23:36,720 --> 00:23:40,800
Speaker 1: tiny details. But focus, focus, focus on paying that credit

475
00:23:40,840 --> 00:23:43,960
Speaker 1: card balance down because that's still thirty four k. You

476
00:23:44,000 --> 00:23:47,000
Speaker 1: paid down twenty k, and that is amazing. You are

477
00:23:47,080 --> 00:23:50,240
Speaker 1: a credit goddess, right and you have you are a

478
00:23:50,280 --> 00:23:54,040
Speaker 1: paydown queen. But let's focus on getting that thirty four

479
00:23:54,119 --> 00:23:57,199
Speaker 1: k paid down asp ACEP asap. So I wish you

480
00:23:57,240 --> 00:24:00,359
Speaker 1: the best of luck. Thank you so much for your

481
00:24:00,440 --> 00:24:04,199
Speaker 1: question to Brown Ambition. I wish you nothing but the best.

482
00:24:04,600 --> 00:24:07,040
Speaker 1: Please follow up, like let me know how the credit

483
00:24:07,119 --> 00:24:09,160
Speaker 1: card paydown is going. Let me know how you paid

484
00:24:09,160 --> 00:24:12,080
Speaker 1: off that first twenty k cause I love to support

485
00:24:12,160 --> 00:24:15,119
Speaker 1: y'all and love to share all your different strategies. But

486
00:24:15,359 --> 00:24:18,560
Speaker 1: congrats again. I think you're in a pretty good position

487
00:24:18,680 --> 00:24:21,240
Speaker 1: to even be thinking about after I paid on the

488
00:24:21,280 --> 00:24:23,680
Speaker 1: thirty four k. What am I gonna do? So keep

489
00:24:23,840 --> 00:24:26,520
Speaker 1: keep going, all right? This was such a fun episode.

490
00:24:26,520 --> 00:24:28,960
Speaker 1: Thank y'all for the questions again. Hit us up at

491
00:24:28,960 --> 00:24:33,080
Speaker 1: brownambitionpodcast dot com. Send us your questions through ig. We

492
00:24:33,160 --> 00:24:36,639
Speaker 1: are at Brian Ambison Podcast and I am Mandy Woodruff Santos.

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00:24:36,720 --> 00:24:39,480
Speaker 1: I'm at Mandy Muddy on Instagram and I cannot wait

494
00:24:39,520 --> 00:24:43,200
Speaker 1: to hear from you guys. See y'all next week. Hey

495
00:24:43,240 --> 00:24:45,440
Speaker 1: ba fam, we could not do this show without your

496
00:24:45,440 --> 00:24:48,320
Speaker 1: support or the support of our team behind the scenes.

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00:24:48,600 --> 00:24:52,240
Speaker 1: The Brown Ambition Podcast is produced by Cumulus Podcast Network.

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00:24:52,320 --> 00:24:55,800
Speaker 1: It's edited by the wonderful Emani Crosby and produced by

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00:24:55,840 --> 00:25:00,119
Speaker 1: Tanya Bustos. Dennistimplinsky is our in house tech guru, and

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00:25:00,240 --> 00:25:03,080
Speaker 1: I am Bandy Woodard Santos, your co host, and I

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00:25:03,200 --> 00:25:08,320
Speaker 1: will see y'all next week.