Robinhood Gold Card: Is 3% Cash Back Worth the Waitlist and Membership Fee?

Summary

NerdWallet's Smart Money Podcast

Episode Summary: "Robinhood Gold Card: Is 3% Cash Back Worth the Waitlist and Membership Fee?"

Airdate: June 1, 2026
Hosts: Sean Pyles, CFP® & Elizabeth Ayoola
Guest Expert: Melissa Lambarina (NerdWallet Credit Card Writer)

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Episode Overview

This episode answers a listener’s question about the newly-hyped Robinhood Gold credit card. The hosts and NerdWallet credit cards expert Melissa Lambarina break down whether this card's 3% uncapped cash back, unique redemption options, and $50/year membership make it a smart pick for most individuals. They also compare the Robinhood Gold Card with other market options, discuss who will truly benefit, and share practical strategies for managing multiple credit cards.

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Key Discussion Points & Insights

1. Listener Question & Robinhood Gold Card Introduction

[03:03 – 04:33]

• Listener Eddie from Los Angeles asks about the Robinhood Gold Card, intrigued by its 3% cash back on all purchases if rewards are transferred to Robinhood investment accounts.
• He wants a practical, unbiased review—especially on its flat-rate rewards, annual membership, and overall value versus other cards.

2. Card Details & Standout Features

[04:00 – 04:33]

• Melissa summarizes the card:
  • Waitlist: Ongoing since launch, with slow rollouts.
  • Eligibility: Requires active Robinhood Gold membership ($5/month or $50/year).
  • Rewards: 3% unlimited cash back on all spend; 5% back when booking through Robinhood's travel portal.
  • Redemption: Rewards can be redeemed (at 1 cent/point) directly into a Robinhood brokerage account.

3. Key Benefits & Unique Perks

[05:03 – 07:21]

• The Gold membership’s value goes beyond the card:
  • 3% IRA match for Robinhood IRA contributions.
  • 3.35% APY on eligible brokerage cash.
  • Access to Morningstar research and other extras.
• For high IRA or brokerage contributors, these perks can more than offset the membership fee.

Memorable Quote:
"It's 3% uncapped cash back on all purchases. That's really good rate." — Melissa [05:09]

4. Cautions & Who Should Avoid the Card

[05:27 – 06:16]

• High APR (interest rate): Not for those who carry balances—interest wipes out rewards.
• Ongoing Gold membership required; distinct from traditional annual fees.
• Tracking and maximizing benefits can be cumbersome for casual users.

Quote:
"If you're carrying a balance, the APR will easily remove any value from the rewards." — Melissa [05:27]

5. Managing Card Benefits & Strategy

[07:51 – 09:03]

• Hosts and Melissa discuss the importance of tracking benefits to truly offset fees.
• Some use spreadsheets to maximize perks, but Melissa favors a simpler approach focused on easy-to-track, broadly useful card perks.

Quote:
"I do not use spreadsheets... I have to be realistic with myself. That is just not my way of managing my credit cards." — Melissa [08:19]

6. The Waitlist: The Biggest Barrier?

[09:04 – 10:36]

• Waitlist has lasted two years; 800k cardholders to date despite 2 million initial signups.
• Purpose: To control rollout, test the product—though it can feel like artificial scarcity.

Quote:
"There were around 800,000 customers as of late that had the card... the waitlist has been around for two years." — Melissa [09:20]

7. Objective Pros and Cons

[11:15 – 12:21]

Pros:

• 3% Cash Back: Top in the industry for flat-rate cards (compared to a 2% standard).
• 5% Back via Travel Portal: Excellent for travel enthusiasts.
• Convenience: No foreign transaction fees; Visa network for broad acceptance.
• Useful Features: Virtual card numbers, automate subscription cancellations, end free trials automatically.

Cons:

• Long Waitlist
• Membership Fee: Required Gold subscription may not pay off for all.
• High APR: Especially risky for those who may carry a balance.

8. Alternatives to Robinhood Gold Card

[12:21 – 14:50]

• For higher rewards: Chase Freedom Flex (rotating bonus categories).
• For simple cash back: Capital One Savor, Wells Fargo Active Cash.
• For frequent travelers: Chase Sapphire Preferred (strong bonus, travel perks).
• Tradition investment-focused cards: Fidelity Visa (similar cash-back-to-investing structure).
• Redemption flexibility: You can always redeem cash rewards from any card and transfer to your investment account manually.

Quote:
"There’s nothing stopping you from having a cashback credit card... and putting them into a brokerage account yourself." — Melissa [13:37]

9. Who Is the Robinhood Gold Card For?

[15:09 – 15:47]

• Ideal for:
  • Patient users okay with the waitlist.
  • Consumers who maximize Gold membership (especially with Robinhood IRAs).
  • Those who pay off balances monthly and prefer to keep investment/travel rewards unified.
• Not for:
  • Anyone likely to carry a monthly balance.
  • Users unable or unwilling to maximize Gold membership extras.

Quote:
"It's not for people who tend to carry a balance... the expensive interest will outweigh any potential value." — Melissa [15:15]

10. Hosts’ Philosophy on Card Choices

[18:03 – 28:17]

• Both Sean and Elizabeth share personal approaches to selecting and downsizing cards:
  • Look for fit with lifestyle, easy-to-earn rewards, genuine perks (e.g., lounge access for travel, bonus cash back on regular spending).
  • Avoid tracking complex bonus categories/spreadsheets when possible—simplicity is valuable.
  • Don’t let "aspirational" perks lead you astray if costs/fees outweigh your usage.
  • Consider downgrading an unused fee-heavy card to keep your card history and credit score intact.

Quotes:
"Keeping it simple has definitely improved my finances this year." — Elizabeth [28:17]
"I'm kind of excited to cancel the one that I do have to see what I go through emotionally when it affects my credit score... and just keep it simple." — Sean [27:48]

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Notable Quotes & Moments

• “I have to be realistic with myself—that is just not my way of managing my credit cards.” — Melissa [08:19]
• “There were around 800,000 customers as of late that had the card... and this is in comparison to people who in the first year, there were around 2 million signups for this card.” — Melissa [09:20]
• “If you’re carrying a balance, the APR will easily remove any value from the rewards.” — Melissa [05:27]
• “There’s nothing stopping you from having a cashback credit card... and putting them into a brokerage account yourself.” — Melissa [13:37]
• “Keeping it simple has definitely improved my finances this year.” — Elizabeth [28:17]

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Key Segment Timestamps

• Listener question & card intro: [03:03]
• Robinhood Gold requirements & fees: [04:33], [06:35]
• Rewards details/unpacking the Gold membership: [05:03], [06:35]
• Card’s unique investment focus: [05:27], [13:56], [14:12]
• The long waitlist explained: [09:04], [10:12]
• Pros and Cons rundown: [11:15]
• Alternative cards and comparison: [12:21], [13:56]
• Who this card is best for: [15:09]
• Host personal strategies: [18:03], [21:43], [27:11]
• Managing/downgrading cards: [26:36]
• Closing thoughts & summary: [27:48], [28:17]

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Final Takeaway

The Robinhood Gold credit card is a top-tier flat-rate cash back card—if you’re already active in Robinhood’s investment ecosystem, willing to be patient with the waitlist, and certain you'll maximize the Gold membership perks. However, for most people, comparable cash back and travel cards may be easier to access, less restrictive, and equally rewarding. Avoid if you carry balances or don’t want the hassle of tracking benefits year-round.

For more details, card reviews, or to compare your options, the hosts recommend NerdWallet’s credit card comparison tools and Melissa’s in-depth articles.

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For questions or feedback, listeners can contact the show via the Nerd hotline or email, and subscribe to the NerdWallet newsletter for additional tips and behind-the-scenes commentary.

Transcript

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[A]

And I'm Elizabeth Ayola. I, Sean, have not thought about getting a new credit card in a while. And speaking of travel credit cards, I know you're against having multiple because you'd be hating on me, but now that you're enjoying your lounge access. Are you thinking of going to the other side and getting lots of travel credit cards?

[B]

Well, here's the thing. I have one credit card that's great for travel and then I just got another one, the Alaska credit card that is phenomenal for travel and has lounge access or gives me lounge access in my local airport in Portland. And I'm really happy with it. So I'm probably actually going to get rid of my other credit card because I like to keep things simple.

[A]

So. So you're downsizing?

[B]

I'm downsizing. Well, come July, August, right before my fee is due, I'm going to be downsizing.

[A]

I like that you're true to your values.

[B]

Thank you.

[A]

All right, let's get into the money question.

[B]

Let's do it. So this episode's question comes from Eddie, who sent us an email. Hi NerdWallet team. My name is Eddie from Los Angeles. I'm a regular listener and really appreciate how you break down credit cards in a practical way. I was wondering if you'd consider reviewing the Robinhood Gold credit card. It seems like a pretty unique catch all credit card offering 3% cash back when rewards are transferred into a Robinhood investment account, which could be really appealing for people focused on long term investing. I'd love to hear your take on the pros and cons, especially how it compares to other flat rate cashback cards and whether the Gold subscription fee makes sense for most consumers. Thanks for all the great content. Your podcast has helped me make smarter financial decisions and upgrade my wallet incredibly.

[A]

We love to hear that, Eddie. We're glad that people are listening to us. Yap. And it's helpful. Now to help us answer Eddie's listener question on this episode of the podcast, we are joined by Nerd Wallet credit card writer Melissa Lambarina. Welcome back to Smart Money, Melissa.

[C]

It's great to be back.

[B]

Hey Melissa. So you actually wrote NerdWallet's review of the Robinhood Gold card, which we'll link to in today's episode description. It's a pretty unique product that has a solid cash back rate like Eddie said. And interestingly, you can redeem your points for cash directly into your Robinhood brokerage account. I have to say, when I first saw this product, I thought it was a kind of gimmicky, shrewd way for Robinhood to get folks even deeper into their investment ecosystem. But the card is surprisingly well rounded. Is there anything else that folks should know about this product?

[C]

That's right, it is very well rounded and it's important to Also know a few things about this card. To start, it's only a few years old and it has a wait list. It's had a wait list this whole time. The rollout of these cards has been rather slow. So that's important to keep in mind if you're considering it as an option. You also have to be a Robinhood Gold member to be able to qualify. And that costs $5 per month or 50 dol annually. That's an additional cost to consider.

[B]

Yeah. And let's talk about the rewards rate, because Eddie mentioned that it's 3% flat rate. Is that right?

[C]

That's right. It's 3% uncapped cash back on all purchases. That's really good rate. And you also get 5% back through rabid Robinhood's travel portal.

[B]

Okay. And now let's talk about how you can actually redeem points for investing in a Robinhood brokerage account, because that's the really unique aspect of this card.

[C]

Yes, you'll get the most out of this card if you redeem the rewards through Robinhood's ecosystem. And rewards are issued as points that you can redeem at a value of 1 cent apiece for a cash deposit into a Robinhood brokerage account. I also want to note that it's very important who this card isn't for. It's not for those who are in the habit of carrying a credit card balance because the APR is really high, as is typical with rewards credit cards. And this can easily remove any value that you could potentially get out of the rewards with this card.

[B]

And that's just a good rule of thumb across all travel credit cards or fancier credit cards like this. Because you're getting such a great rewards rate, it can be tempting to use it as much as you want. But the interest rate that you're going to be paying on this debt is so expensive, it's really going to wipe out any value of the points that you get.

[A]

I third that. Now, Melissa, both you and Eddie mentioned that you have to be a Robin Hood Gold member to even be able to apply for this card. And this is different from a traditional credit card annual fee as well. So can you talk to us about how this works and to Eddie's question for us, does it make sense for most people to sign up for this card?

[C]

The Robinhood Gold card can offset the cost of the Gold membership, and in some cases, it can even pay for itself. It can be worth it for somebody who is going to max out their Robinhood IRA or at least contribute $2,000 to it to offset the cost. I also just want to note some of the things that the Robinhood Gold membership offers, just for context. It has a 3% IRA match on eligible IR IRA contributions to your Robinhood IRA, 3.35% APY on eligible brokerage cash. Professional research from Morningstar. And this is just to name a few things. Keep in mind, though, that terms apply, so you should always read the fine print and find out if it's right for you.

[B]

That's a really solid set of benefits that you're getting for $50. Whereas we know with a lot of these travel credit cards that are coming out nowadays, you can be paying an annual fee of several hundred dollars, close to even a thousand doll. These cards.

[A]

I would know. I have just paid almost $800 for one of my credit card annual fees.

[C]

That's right. And every time that you're considering an annual or monthly cost, you want to make sure that the card offers ways that you'll actually use to offset that cost. Otherwise, it's not really worth it.

[A]

Yeah, and I want to point out, too, you have to track this, right, because it's easy to sign up for the card and be like, oh, it has all these great benefits. I struggle. I'm not going to sit up here and lie to y'.

[B]

All.

[A]

I struggle with tracking the benefits and make sure that I'm maximizing the card. So make sure you have a system in place before you get the card to make sure you're maximizing those benefits.

[B]

I know a lot of our colleagues at NerdWallet, especially in the credit cards team, will have spreadsheets where they're tracking all the available benefits with their credit card to make sure that they are offsetting the fee. Melissa, do you use anything like that?

[C]

So this is one thing that I have to confess. I do not use spreadsheets. I admire my colleagues that. Do I have to be realistic with myself? That is just not my way of managing my credit cards. This is what you have to go into with credit cards, really knowing what's your management style. I'm not going to manage different credit cards on spreadsheets. So I tend to go for a more simplistic approach and choose the cards that are going to offer simple rewards that are easy to remember or things that I don't have to track as frequently.

[B]

Yeah, I'm right there with you, Melissa. And I think it's worth pointing out that you've been writing about credit cards for about a decade at this point, maybe a little More. And you aren't totally deep in the tracking every single benefit camp because that's just not what works for you. And that's okay.

[C]

Definitely.

[A]

Melissa, my eyebrow. Can you see it? It was raised when you said that there is a wait list for this card. Do you know how long? I know that you mentioned that, but how long is this wait list? How long gotta wait?

[B]

Also, I just wanna point out having a waitlist for a credit card sounds ridiculous. So please help me understand why this is even a thing.

[C]

The main question, the waitlist, how long it's been around? It's been around for two years, y'. All. There were around 800,000 customers as of late that had the card. And this is in comparison to people who in the first year, there were around 2 million signups for this card.

[B]

Wow.

[C]

So that just should give you an idea that doesn't mean that the wait has been two years, but has been a wait list for two years and the wait time is unknown at this time. So you should just be ready to be patient if this is something that you're really into and really want in your wallet. But regarding the waitlist. So a card launching with the waitlist isn't necessarily something that is rare every time there's a new card. Sometimes companies will do with this approach, use this approach in order order to be able to gauge the success of the card and test the card before it launches to the masses.

[A]

Okay.

[B]

Okay. So for me, I thought it was some sort of continuing the whole gimmicky product thing. I thought it was some artificial scarcity that Robinhood was rolling up to amplify the hype around this card. But it seems like maybe they were just being cautious with rolling out a new product.

[C]

That sometimes can be the case. So, yes, that's something to consider going into this card, that there will be a wait.

[B]

And it doesn't seem like it's going away anytime soon, this waitlist.

[C]

Not as far as we know, no.

[B]

All right. You know, you were kind of selling me on some of the benefits, especially with getting a match for an IRA and other aspects of being in Robinhood's ecosystem with the Robinhood Gold membership. But the waitlist is not for me. I think I'm too impatient. I want my card when I want it now. Yeah.

[A]

But I think one of the decide not. I think I know one of the things that you have to go through, which Eddie is trying to do before you choose a card, is you need to weigh out the pros and cons. And yes, I'M going to put a shameless plug. Nerdwall is really good at doing that. People like Melissa come up with these really great articles that help us to look at the pros and cons of a credit card. But Melissa, run us through the pros and cons of this one in particular.

[C]

Sure, there are quite a few pros. That 3% cashback rate that we discussed on all purchases that is one of the best. For context, 2% cash back on all purchases is the gold standard among cashback cards in the industry, so this is definitely a step up the travel rate. 5% back is also a solid rewards rate and it makes a good travel companion because it belongs to Visa's network and that has broad merchant acceptance and it also doesn't charge foreign transaction fees. Among those, it also offers helpful features such as virtual card numbers that can make it easier to shop safely online, ways to cancel subscription payments, and ways to end free trials automatically. And we know that's always useful.

[B]

Okay, well let's get into some of the cons besides the big one for me, which is the wait list.

[C]

Yes, the waitlist is an obvious con. The membership requirement may also be a con for some, depending on whether you can make the most of it to offset the cost and as we discussed, the high apr, but only if you are going to likely carry a balance on this card.

[A]

All right, Melissa, worst case scenario, someone is like Sean not trying to wait on this wait list for this card. What are some other comparable cards that are currently in the market can give cash back and those travel benefits and also maybe be an investment card that people can maybe shop for.

[C]

So the answer to this is that it really depends on how someone spends and what their goals are. The Robinhood card hits a lot of different marks, but depending on what you're interested in, you'll want to choose a card that aligns with you. For instance, for a higher rewards rate, the Chase Freedom Flex can earn more in certain categories that rotate quarterly and travel book through Chase. So that's one option. And for people like Sean, if the wait list isn't for you, you're not feeling it. There are other options that reward everyday purchases handsomely, like the Capital One Saver or Wells Fargo Active Cash that offer rewards on everyday spending. And for frequent travelers, the Chase Sapphire Preferred is a good option. It can offer a chance to earn a bonus that jump starts your travel goals and also earns elevated rewards on travel. I also want to just note that there's nothing stopping you from having a cashback credit card if you want that flexibility to be able to redeem rewards for cash and use it however you would like. And one of those options could potentially be also just using those rewards and putting them into a brokerage account yourself. So nothing's stopping you from doing that. But the Robinhood Visa is designed to be able to incentivize that.

[A]

Melissa. Things are stopping me. Croissants are stopping me from just putting it in the investment account and Zara and other things.

[B]

Yeah. Well, Melissa, I'm wondering if you're aware of any other cards that do have that unique feature of being able to give you rewards specifically for investing like this card offers.

[C]

So there was a Fidelity, Fidelity Visa, that was one option that we saw that did offer rewards in this sector. And there's other fintech cards potentially. Off the top of my head, I can't recall the exact names, but those are some options as well.

[B]

Okay. But this might be the highest profile because I hadn't heard of other cards doing this until I looked into this one.

[C]

Yes. This card in particular is unique in that it hits a lot of marks, travel investing, a lot of variety of different rewards. That 3% cashback rate, it's all decent. And you also get that 3% match in a Robinhood IRA if you have that Gold membership.

[B]

Okay. Well, listeners, as you may have gathered, NerdWallet's credit card writers, like Melissa, have written reviews of all of these cards that we just mentioned, and we'll look to them in today's episode description. Also, as a friendly reminder, you can find a bunch of free credit card comparison tools on nerdwallet.com that you can use to figure out which card might be best for you and your specific situation.

[A]

Melissa, before we close out, I want you to tell us, who do you think this card might be best for?

[C]

So I'll tell you who it's not for. It's not for people who plan or tend to carry a balance on their credit card because the expensive interest will far outweigh any potential value you'll get from the perks or rewards on this card. I think, though, that it might be a good fit for someone who's willing to wait for it and be patient and also take advantage of what the Gold membership has to offer to make the most of its cost. And if you're willing to redeem rewards within the Robin Hood ecosystem, you'll get the most out of this card, too.

[B]

Okay, so what I'm hearing is that it's not for me, which is okay.

[A]

And what I'm hearing is it's maybe for me, I don't know. Depends on the annual fee. I don't need any more annual fees.

[B]

All right, well, Melissa, thank you so much for coming on and chatting with us.

[C]

Thank you. It's been a pleasure.

[B]

We're back in a minute. Stay tuned.

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[B]

All right, so Elizabeth, here's one thing I'm wondering about because it seems like Eddie's really in a point where they're shopping around for a card and they're thinking about one that might Be a good investment tool for them. And what do you think about when you're shopping around for a new credit card in your lineup?

[A]

Well, I would say with my last credit card that I shopped around for. Oh, so, okay, let's back it up. My last two, because I got them, I think within a couple of years I got the Chase sapphire and then I had the American Express Platinum. With the sapphire. I wanted to start getting free trips, honestly, because I kept hearing about people getting free trips with points. And I'm like, what are they talking about? Is it a scam? Is it real? And I'm like, oh, it's real.

[B]

It is real.

[A]

It is real.

[B]

Yes.

[A]

So I looked into what would first of all give me the best signup bonus. I also looked into kind of what Melissa was saying about having a card that didn't seem so stressful to earn the point. So where I could get points from everyday spending, that was important to me. I also looked at, oh, restaurants, like eating out. What kind of things do I like to do and will I easily be able to rack up points with? And that was really it. Now with the American Express Express 1, it was all about the lounges. I was like, oh, wait, I love a lounge. I'm a lounge girl and I need access to nice lounges. So honestly, that was a primary driver. The American Express is not great when it comes to getting points for everyday spending, but it does have other benefits.

[B]

And the sign up bonus is pretty wild. It sounds almost like you were looking for things that were fitting your current needs and ways of shopping. But there was a certain aspirational aspect of this too, where you were thinking, I want to be that girl in the, in the airport lounge and I want to be able to have a luxurious travel experience that you hadn't had before. How did that pan out for you?

[A]

Absolutely. Because we're all bougie about something and I'm bougie about lounges. So that's my bougie thing. And I love it. Actually, I love it. I have a ritual every time I go to the airport. I get my Bloody Mary, I get my food, I get all the things I eat, I take a snack for the plane, I relax, I use the free WI Fi and then I get on my flight. So I literally do that every time I'm gonna travel and I go to the airport two hours early to make sure I'm not rushing and I can enjoy myself. So I think it's worth it.

[B]

I mean, being able to get away from the crowds at least somewhat. I mean, we know that a lot of airport lounges have gotten quite crowded, but at least you have a more comfortable seat once you get past the crowd a little bit. I mean, I'm completely sold on airport lounges now, having just started using them in the past year.

[A]

I'm not going to lie though. Travel over the past year so far has been very hectic, as you know. And it also almost made me rethink some of my former travels, whether it was worth the price because I had long wait lists I had to wait into before I could even get into the lounges. By the time I got there, sometimes a lot of the food was gone or there wasn't any comfortable place to sit, or they hadn't had time to clean up properly. And it's like I'm paying almost a thousand dollars a year for this card and for lounge access, and the lounge access is really crappy. And then for some of the cards, I realized, you know, I'd be at the airport super early sometimes, and you can't get in until maybe two hours before your flight. So I've had to maybe sit around the airport for extra couple hours when there's delayed flights and I can't even access the lounge.

[B]

And also, who wants to be hanging out at the airport for several hours before their flight? I mean, that's not how I live my life. I used to be that person that like, old dad who would get to the airport like 3 hours early, and now I live like 10ish minutes away from the airport in Portland. And so I'm leaving like maybe an hour before my flight because I just don't want to be lingering too much every so often. If I'm traveling with someone, I'll meet up with them at the lounge and have a nice time before the flight. But if I'm doing things on my own, I don't want to be hanging out at an airport.

[A]

I agree. Well, I do like to, but only in the restaurants. Only in the restaurants. What are some things you look out for when you're shopping for cards?

[B]

Really, it's about convenience for me. As we kind of talked about earlier, I don't want to be tracking things in the spreadsheet. I want to make sure that my purchases that I'm already going to be doing, like getting food delivered to my house and groceries and gas and going out to restaurants, will be rewarding me without me having to worry too much about it. And so my other travel credit card that I'm probably going to be Canceling later this year. It has a few of those sort of rotating categories, and I'm just not the person to track that. And so I will be saying goodbye buy before I pay the fee. And that's okay, because now my main travel credit card, which is the Alaska card, I've been really enjoying it. It just keeps things simple for me. And yes, there's a not small annual fee that comes with it, but so far it's been really worth it for the Companion Fair. And because we're a hub in Portland, it just makes a lot of sense for me.

[A]

And how are you tracking spending with that? So you're not. You just kind of know that it's working for whatever expenses you have, or do you use it for certain expenses?

[B]

Yeah, well, I'll tend to use it for restaurants and for other travel. Like I just booked a hotel for some upcoming travel. And I made sure to use that because I'm going to be getting some good points for it. But I was also thinking about how this card is a little gimmicky and how there are a lot of kind of gimmicky cards out there. And the most gimmicky one that I have, I feel really silly that I even applied for this. But after I bought my car, I'm obnoxious and have a BMW. And I applied for the BMW credit card because I thought it was like, here's me completing my obnoxious BMW BMW owner lifestyle.

[A]

Did you get the hat?

[B]

I didn't get a hat because I actually would have had to use my BMW credit card points for it, which felt really silly and unnecessary. I'm not going to be paying to represent this brand more than I already am driving this car. But, I mean, they gave me a $20,000 credit limit, which I thought was pretty sweet. And I figured, wow, they really want me to go into even more debt to this company.

[A]

Well, on the pro side, your utilization would. Well, not your utilization, but your amount of credit that you have goes up. That's a plus for your credit card.

[B]

That is absolutely it. And that's why I keep the card open, even though I have not used it in quite a long time, because I have this huge buffer in my utilization. Yeah. And the history at this point, too. I'm honestly waiting for them to write me a letter saying, we're going to cancel your card because I have not used it for a single purchase in over two years, which is kind of uncommon. Often credit card companies will just close your card on you if you don't use it. But I guess BMW is still holding out hope I'll go into more debt with them, so.

[A]

But we know you won't.

[B]

I won't. I won't. Do you have any other kind of gimmicky cards? Like, you have store credit cards, don't you?

[A]

I do.

[B]

I consider those in the gimmicky category.

[A]

They are, and my main one is for the TJ Maxx Ross Marshalls. I literally live six minutes away from all three. Very dangerous. And I browse around, and anytime I'm checking out, they go, do you want to get the credit card? And I'm like, I already have it. It's in the car. So I actually never use it, which probably isn't to my benefit, but to your point, I don't want to manage, you know, payments on just several cards all the time and have to. So I have it there. I don't know. I think it might still be open, but I don't really use it. And that's the only.

[B]

What do you get for it? Do you get cash back at these stores?

[A]

You get cash back if you send a certain amount or you get points, but I don't need them encouraging me to spend more money over there.

[B]

I recently got a advertisement in the mail for a credit card for a bulb company like Plant Bulbs that you put in the ground. I purchased from them in the past because they have good products. They're like some Dutch company, and they wanted me to sign up for their credit card. And I was really surprised that this random, like, plant supply store even had a credit card. And so I looked into it, and there are no perks besides just having this company branded card. And of course, the APR was around 25%, so I just thought it was the silliest product. I'm sure there's someone who says, I love this company so much, I want to have the branded credit card. But you're not even getting free bulbs, which aren't cheap in the first place. So, yeah, I found it really funny.

[A]

Yeah, that's a no for me. I will say one of the most satisfying things for me, aside from getting a rewards credit card that I think is valuable to me or to my life, has been closing one. I don't know if you remember that I closed my first one this year, my City Advantage card, which had maybe A$560, something like that annual fee, because it was of no more use to me. And I felt like an adult, Sean. I felt like an adult. I felt like I was making smart Financial decisions and paying attention to my finances and saving money.

[B]

Saving your values.

[A]

That's right. It felt so good to be like. And I cut it off right before the due date for the. For the renewal. Right before.

[B]

Okay. Very proud of you for that. Thank you. Did you worry at all about the hit to your credit score because you then had less available credit? I mean, we talked recently about detaching your emotions from your credit score. It's really hard to do. How was that experience for you?

[A]

Well, thank you so much. Unfortunately, I can't. I can't answer that properly, Sean, because I left out a detail, actually. Thanks for reminding me. I downgraded the card, actually.

[B]

Oh.

[A]

So they convinced me because, you know when you're about to close the card, they don't want you to, and they start sending you all these other departments. So they were like, you can't downgrade it to a card with no annual fee. And I thought I had to ask them three times. I said, so there's no annual fee? And they said, no, there's no annual fee. So obviously there's not all the perks either. But I thought the benefit of that would be, like we said, keeping my credit history for that card because I have had it for a couple of years and then there's just nothing that I lose from it because there is no fee. I don't actively use the card much. I think I just have maybe like a $5 subscription on there and it's somewhere in my closet or something.

[B]

Yeah, I'm really glad you mentioned that because I don't think a lot of folks know that you actually can do. They call it sometimes like a product transfer or product change, where if you had a card with a big annual fee. There are other cards in their network work that are kind of similar. They're not going to have all the great fancy perks, but you're not going to be paying a few hundred dollars a year just for the benefit and privilege of having a credit card. So that's a great way to maintain your credit history. You might have slightly lower available credit, which can affect your utilization, but on the whole, it's one of the smarter things to do for your credit profile.

[A]

Exactly. So it was a win win for me. No annual fee and no hit to my credit score.

[B]

Okay. Well, with that said, I don't think I'm going to be buying any more credit cards or applying for them anytime soon, which is a nice feeling. I'm happy with what I have. I'm kind of excited to cancel the one that I do have to see what I go through emotionally when it affects my credit score just to help myself detach my self worth from this number that these companies made up based on the things that I've been doing with my finances and my credit. And just keep it simple. That's how I like my credit cards.

[A]

Yeah, keeping it simple has definitely improved my finances this year. So I'm there with you.

[B]

Okay, well, I think that we can wrap things up. That's all we've got for this episode. Remember to send us your money questions. You can call us or text us on the Nerd hotline at 901-730-6373. That's 901-730-Nerd. You can also drop us a comment on Spotify or YouTube or you can email [e-mail] and by the way, we also have a fantastic newsletter that we put together with our producers. You can find a link to that in the episode description.

[A]

Join us next time to hear about how to manage investment tax bills. We hate those.

[C]

Boo.

[A]

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[B]

And here's our brief disclaimer. We are not your financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.

[A]

This episode is produced by Tess Figures. Hilary Georgie helped with editing, Eve Krogman edits our audio and video. And a big thank you to NerdWallet's editors for all their help.

[B]

And with that said, until next time, turn to the nerds. Hey Smart Money listeners. We have a brand new email newsletter and it's completely worth signing up for, especially since it's free.

[A]

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[A]

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