Clark Howard

Well, it’s finally happening. Capital One is migrating Discover customers over to its platform.

After the merger was finalized in 2025, Capital One began transitioning Discover customers in 2026 and is expected to complete the process sometime in 2027.

That means many Discover credit card holders have begun receiving notifications about the impending removal of their access to the Discover app and website. And with that comes the removal of some popular Discover perks.

For many, it’s a frustrating and potentially confusing transition that they didn’t ask for when they signed up for their accounts.

In this article, I’m going to walk you through some of the important things to know if you’re going through this account transition.

Table of Contents

Timeline and How the Migration Works

Discover Migration: What Will Change? What Will Stay the Same?

What You Can Do Now

Timeline and How the Migration Works

Capital One has been moving Discover customers to its platform in waves. This transition period began in Summer 2026 and is expected to conclude sometime in 2027.

So, if you’re a Discover customer who has not already received an email notification about your account becoming a Capital One account, you likely can expect to receive one in the near future.

If you have multiple Discover products (e.g., credit card, debit card, savings account, checking account), note that they won’t all migrate on the same timeline.

It appears that credit card accounts started migrating before bank accounts, so those are likely to be moved first.

The migration has been laid out as follows:

Capital One notifies you via email that you’re a part of the next “group” to be phased out of the Discover ecosystem. Personally, I received my Discover card notification on July 31, 2026, with a transition date of October 19, 2026.

After you receive your notice, you will still have temporary, limited functionality on the Discover site and app for tasks like paying bills and redeeming rewards.

In the days leading up to your migration date, you will receive instructions to set up your login on the Capital One site and app.

After the migration date, you will manage the account exclusively via the Capital One website and app. Discover will no longer support your migrated accounts.

Discover Migration: What Will Change? What Will Stay the Same?

If you have a Discover credit card or bank account, you may have some questions about the future of the perks and rewards that you have enjoyed with Discover.

Capital One has provided an FAQ landing page for Discover cardholders that may directly address some of your specific concerns, but I wanted to call out some of the highlights of what you can expect to change and what will stay the same.

Key Changes

You’ll access your account and pay your bill on the Capital One website or app. Your Discover login credentials will eventually be retired and will be useless post-migration.

You’ll lose your free credit score service from Discover, but there is a way to get a free credit score through Capital One’s CreditWise program. You’ll have to enroll after the migration.

Rewards cannot be applied toward your minimum credit card payment anymore. You can still redeem them as a statement credit to reduce your overall balance, though.

You won’t be able to pay with your rewards via Apple Pay anymore. Also, Apple Pay recurring subscriptions may need to be re-established.

Capital One has already removed the Online Privacy Protection perk that offered Discover cardholders free monitoring and removal requests for their name and address from third-party websites. This was one of money expert Clark Howard’s favorite “freebie” credit card perks before it met its demise.

One more to monitor is your credit card’s APR. Capital One says the following about potential changes to those in the FAQ:

“You will receive Account Terms by email or mail, if you haven’t already, alongside other important information from Capital One that outlines your APR—that’s the best place to look because APR varies from cardholder to cardholder.”

What Stays The Same

While there are some minor, but legitimate, gripes about some of the changes above, most of the attributes of your Discover card actually will remain the same.

That includes:

Your card number and details will remain the same. Capital One says: “Primary cardholders can continue to use their card, now and after their account moves to Capital One. Additionally, places where a primary cardholder has their current 16-digit card number stored online will continue to work.” Authorized users will be provided new cards with new numbers, though.

No new annual fees. Discover’s big pitch on its cards was that there were no annual fees and Capital One intends to honor that.

No new account logged with the credit bureau or direct impact to your credit score based on this change. Your credit history from Discover will transfer over.

Your rewards program will stay the same. So, if you have the Discover it Card, you can expect to continue to see rotating 5% categories with spending caps and a non-bonus rewards rate of 1% back on everyday purchases. Existing rewards will transfer as part of the migration.

The popular “cashback match” welcome bonus promotion is set to continue.

What You Can Do Now

Like it or not, all Discover cardholders are soon to be Capital One cardholders.

Some steps you can take to make this migration as smooth as possible include:

Make sure your contact information is current with Discover so it moves over properly

Download the Capital One app in preparation for usage

Redeem your Discover cash back rewards before the limited functionality period begins for your migration

Verify your payment source and any sort of autopay setup transfers over properly

Enroll in CreditWise to continue to enjoy a free credit score with your card

Watch for official emails from Capital One to give you specific instructions (don’t just rely on internet fodder about the changes)

Have you gone through the Discover migration already? We’d love to hear about your experience moving to Capital One in the Clark.com community.
The post Your Discover Card Is Migrating to Capital One: What to Expect appeared first on Clark Howard.

At Clark.com, we rarely recommend the most expensive cell phone plan available from a provider. However, pricier plans often come with additional perks, which may include free or discounted streaming subscriptions. 

In this article, I’ll share 10 popular streaming services that you can get discounted or free with a cell phone plan. If your current plan + streaming subscription costs more than the options below, consider switching to save on both services!

10 Streaming Services Free or Cheap With Cell Phone Plans

If you’re looking for a specific streaming service, check this chart to see whether it’s available for free or at a discount through a cell phone service provider.

Streaming ServiceIncluded AccessDiscounted Access

Apple TV+T-Mobile

Disney+Total WirelessVerizon Wireless

ESPN+Verizon Wireless

Fox OneVerizon Wireless

HBO MaxCricket WirelessVerizon Wireless

HuluT-MobileVerizon Wireless

NetflixT-MobileVerizon Wireless

PeacockStraight Talk Wireless

Paramount+Straight Talk Wireless

Prime VideoMetro by T-Mobile

You can find cell phone plans with free streaming services from the following providers: 

Cricket Wireless (HBO Max)

Metro by T-Mobile (Prime Video)

Straight Talk Wireless (Paramount+, Peacock)

T-Mobile (Hulu, Netflix)

Total Wireless (Disney+)

Additionally, T-Mobile and Verizon Wireless offer discounted access to streaming subscriptions with eligible plans. While they aren’t included for free, these savings quickly add up compared to the full price of one or more streaming services.

T-Mobile (Apple TV)

Verizon Wireless (Disney+, ESPN+, Hulu; HBO Max, Netflix; Fox One)

Below, I’ll share which specific plans include free or discounted streaming services.

Cricket Wireless

Team Clark’s Review

Plan: Supreme Unlimited

Price: $55/month for one line; multiline discounts available

Streaming Service: HBO Max Basic with ads

Cricket Wireless offers affordable phone plans that use AT&T’s network. Its most expensive plan, Supreme Unlimited, includes free access to HBO Max Basic with ads. Through HBO, the same subscription costs $10.99/month or $109.99/year.

For a single line, Supreme Unlimited costs $55/month with autopay. For multiple lines, the plan price drops to as low as $32/month per line.

In addition to HBO Max, Cricket Wireless’ Supreme Unlimited plan includes the following:

Unlimited high-speed data (5G)

50GB hotspot data

150GB cloud storage

Unlimited international texting from the U.S. to 200+ countries

Usage in Mexico and Canada

Unlimited calls and texts from the U.S. to Mexico and Canada

To learn more, including how to activate HBO Max through Cricket Wireless, visit the company’s website.

Metro by T-Mobile

Team Clark’s Review

Plan: Unlimited Premium 5G Data

Price: $60/month for one line; multiline discounts available

Streaming Service: Prime Video

Metro by T-Mobile’s top-tier plan includes an Amazon Prime membership. In addition to Prime Video, you’ll have access to all the benefits of Amazon Prime. On its own, the membership costs $14.99/month or $139/year. A subscription to Prime Video only through Amazon costs $8.99/month.

For a single line, Metro’s Unlimited Premium 5G Data plan costs $60/month with autopay. Multiline discounts bring the per-line price to as low as $35/month. 

In addition to Amazon Prime (including Prime Video), here’s what you’ll get with this cell phone plan:

Unlimited premium 5G data

25GB hotspot data

100GB Google One membership

Unlimited international texting to 210+ countries

5-year price guarantee

Phone upgrades

To learn more about getting a free Amazon Prime membership through Metro by T-Mobile, visit the company’s website.

Straight Talk Wireless

Team Clark’s Review

Plans: Gold Unlimited and Platinum Unlimited

Price: From $50/month for one line; multiline discounts available

Streaming Services: Paramount+ or Peacock

Straight Talk Wireless offers affordable monthly and multi-month cell phone plans using Verizon Wireless’ networks. 

The Gold Unlimited and Platinum Unlimited plans each include a Walmart+ membership, which comes with your choice of a Paramount+ or Peacock subscription. Here’s how much these services cost at regular rates: 

Walmart+: $12.95/month or $98/year

Paramount+: $8.99/month or $89.99/year

Peacock: $7.99/month or $79.99/year

For a single month, Straight Talk Wireless’ Gold Unlimited costs $55 for one line. You can get the first three months as low as $50/month with autopay. After three months, you can switch to the 3-month Gold Unlimited plan to keep the same price. Multiline discounts bring the same plan to as low as $35/month per line. 

The Platinum Unlimited plan costs $65/month for a single line ($60/month for the first three months with autopay). With multiline discounts, the same plan is available as low as $45/month per line.

In addition to a Walmart+ membership, here’s what you’ll get with each plan: 

Gold Unlimited

Unlimited data on Verizon’s fastest 5G Ultra Wideband network

30GB hotspot data

100GB cloud storage

International calling and texting to Canada and Mexico

$100 anniversary device credit

$10 discount on Straight Talk Home Internet

Platinum Unlimited

Unlimited data on Verizon’s fastest 5G Ultra Wideband network

50GB hotspot data

500GB cloud storage

Unlimited global texting and international calling to 200+ destinations

Talk, text and data in Canada and Mexico

$100 anniversary device credit

$10 discount on Straight Talk Home Internet

Learn more about getting a free Walmart+ membership, including your choice of Paramount+ or Peacock, on Straight Talk Wireless’ website.

T-Mobile

Team Clark’s Review

Plans: Experience More 2.0 and Experience Beyond 2.0

Price: From $85/month for one line; multiline discounts available

Streaming Services: Netflix, Hulu, Apple TV (add-on)

T-Mobile’s two top-tier plans include free streaming subscriptions. The Experience More 2.0 plan includes Netflix Standard with ads. Experience Beyond 2.0 includes the same Netflix subscription and Hulu (with ads). With either plan, you can add Apple TV for $3/month. 

Here’s how much each of these subscriptions cost at regular rates: 

Netflix: $8.99/month

Hulu: $11.99/month or $119.99/year

Apple TV: $12.99/month

With autopay, T-Mobile’s Experience More 2.0 plan costs $85/month for one line. Multiline discounts are available. For four lines, the same plan costs $42.50/month per line. Alternatively, Experience Beyond 2.0 costs $100/month for a single line with autopay. For four lines, the per-line price drops to $53.75/month. 

Here’s what you’ll get with each plan: 

Experience More 2.0

Unlimited premium data

Netflix Standard with ads

60GB high-speed mobile hotspot data

Unlimited text and 15GB of high-speed data in Canada and Mexico

Unlimited text and 5GB of high-speed data in 215+ countries

5-year price guarantee

Experience Beyond 2.0

Unlimited premium data

Netflix Standard with ads

Hulu with ads

Unlimited hotspot data

Unlimited text and 30GB of high-speed data in Canada and Mexico

Unlimited text and 15GB of high-speed data in 215+ countries

Early upgrade and access to new-customer deals

T-Satellite

5-year price guarantee

To learn more about the streaming services included with T-Mobile’s postpaid plans, visit the company’s website (Netflix, Hulu, Apple TV).

Total Wireless

Team Clark’s Review

Plan: Total All Access

Price: $60/month for one line; multiline discounts available

Streaming Service: Disney+ Premium

Total Wireless offers affordable cell phone plans with access to Verizon Wireless’ network. Its most expensive plan, Total All Access, includes a Disney+ Premium subscription for free. Through Disney, the same subscription costs $18.99/month or $189.99/year.

Total All Access costs $60/month for a single line with autopay. For four lines, the same plan is available for $115/month ($28.75 per line). 

In addition to Disney+ Premium, here’s what you’ll get with Total Wireless’ top-tier plan: 

Unlimited data on Verizon’s fastest 5G Ultra Wideband network

Unlimited hotspot (10 Mbps)

Unlimited calling to and from Mexico

5-year price guarantee

You can learn more about activating a free Disney+ streaming subscription on Total Wireless’ website.

Verizon Wireless

Team Clark’s Review

Plans: Any (Simplicity or myPlan)

Price: From $45/month for one line; multiline discounts available

Streaming Service Add-Ons: Disney+, ESPN+ and Hulu; Netflix and HBO Max; Fox One

Verizon Wireless doesn’t offer any free streaming subscriptions with its cell phone plans. However, you can get a significant discount on streaming bundles. If you’re looking for access to multiple streaming services, Verizon’s deal could be worth it. 

You can choose any Verizon plan to get started. The new Simplicity Plan costs $45/month per line, but new customers can get the same plan for $30/month per line with a switch discount. Alternatively, Verizon’s myPlan lineup ranges from $65 to $95 monthly for one line. These plans are eligible for multiline discounts. For four lines, the per-line prices drop to $30/month for Unlimited Welcome and range up to $60/month for Unlimited Ultimate.

Once you’ve selected a plan, you can add optional perks, including streaming services and bundles. At the time of writing, here are the discounted streaming services available from Verizon Wireless: 

Netflix & HBO Max (with ads): $13/month (save $6.98/month)

Disney+, Hulu, ESPN+ (with ads): $10/month (save $9.99/month)

FOX One: $15/month (save $4.99/month)

You can check out each of Verizon’s myPlan options as well as Simplicity on the company’s website. You can also read our review of Verizon Simplicity here. 

Final Thoughts

A streaming subscription alone isn’t reason enough to choose a new phone plan. However, if it’s cheaper than the cell phone service plus the cost of streaming services you’re already paying for, switching could help you save on two monthly bills.

Finally, check your current cell phone, television and home internet plans to see if any streaming perks are already included. Even if you’ve had the same plan for a while, you may be surprised to find unused perks available. For example, my family has a grandfathered AT&T plan that still includes HBO Max, and we just activated the membership last year. 

Don’t miss out on any streaming perks you’re already paying for or have discounted access to!
The post Cell Phone Plans With Free & Discounted Streaming Services appeared first on Clark Howard.

For a limited time, new customers switching to Visible (Team Clark’s Review) can grab its top-tier annual unlimited plan for 50% off their first year. That brings the price to $18.75/month!

In this article, I’ll share everything you need to know about Visible’s latest deal. I’ll include what you’ll get for the price, as well as how the plan compares to other prepaid unlimited plans.

Unlimited Premium Data for $18.75/Month

Visible is currently offering a $225 discount on its best unlimited plan. This deal is available to new members who choose the annual Visible+ Pro plan. 

At regular rates, Visible+ Pro is available for $45/month or $450/year ($37.50/month). However, using the promo code SAVEHALF, you can get the same annual plan for $225 your first year. That brings the plan price to only $18.75/month! 

Here’s what you’ll get with the Visible+ Pro plan: 

Unlimited nationwide talk and text

Unlimited premium data on Verizon’s 5G Ultra Wideband network

Unlimited premium data on Verizon’s 5G & 4G/LTE networks

Smartwatch service included

Unlimited mobile hotspot data (15Mbps) 

Unlimited talk, text and roaming in and between Mexico and Canada

Calling to 85+ countries

Unlimited texting to 200+ countries

24 Global Pass days

4K UHD video streaming

You can check out the full details of this deal on Visible’s website. 

Alternatively, if you aren’t ready to prepay for a year of Visible service, you can still grab a discount on select monthly unlimited plans. Now through September 30, new customers can use the promo code SAVE6 to save $6/month for the first 12 months of service.

Visible: An Affordable Prepaid Provider on Verizon Wireless’ Network

If you aren’t familiar with Visible, it’s a prepaid cell phone service owned by Verizon Wireless. Customers on Visible’s phone plans have access to Verizon Wireless’ network as the carrier runs on the same towers.

Visible offers only three cell phone plans, but each can be a great option for lowering your phone bill. This is especially true with the current new-customer offer on the Visible+ Pro annual plan. Less than $19/month for unlimited premium data on Verizon’s fastest network is a great deal!

To compare, here are a few of our other favorite affordable unlimited plans:

US Mobile (Team Clark’s Review): Unlimited plans start at $25/month or $270/year ($22.50/month) at regular rates. For this price, you can get 70GB of high-speed data and 10GB of mobile hotspot data on US Mobile’s Warp or Light Speed Networks. On the Dark Star network, the same plan includes unlimited high-speed data and 20GB of mobile hotspot data. Unlimited Premium, which includes truly unlimited high-speed data on any network, costs $44/month or $390/year ($32.50/month) at regular rates. 

Mint Mobile (Team Clark’s Review): For a limited time, new customers can get any unlimited plan for $15/month. At regular rates, the same plan costs $30/month when prepaid annually. It includes unlimited high-speed data; however, after 50GB/month, speeds may slow during network congestion. It also includes 20GB of mobile hotspot data per month.

Tello Mobile (Team Clark’s Review): For $25/month, customers can get an unlimited data plan that includes 50GB of high-speed data and 10GB of hotspot data. However, after 50GB of data usage, speeds will be throttled (reduced) until the next billing cycle.

Before you switch to Visible, check your phone’s compatibility online and make sure you’ll have service in your area by checking Visible’s coverage map. If you have a compatible phone, you can also sign up for a 15-day free trial of Visible without leaving your current carrier. This is a great way to decide whether or not the service will work for you!

I had a great experience testing out Visible myself, and if Verizon has strong service in your area, Visible could be a great way to access those towers for a fraction of the cost. To read about my experience using Visible, check out our full Visible review.

For more options, be sure to read our guide on the best cell phone plans and deals available now.

Are you thinking about switching to Visible? Let us know in our Clark.com Community! Also, be sure to check out the latest conversations about cell phones here.
The post Visible Deal: Save $225 on the Visible+ Pro Annual Plan appeared first on Clark Howard.

For a limited time, new Google Fi Wireless customers who bring their own Pixel phone can save 50% on an unlimited plan for the first 12 months. That brings the monthly price to as low as $17.50 for one line! 

In this article, I’ll share everything you need to know about Google Fi Wireless’ latest deal, including who’s eligible, what you’ll get for the price and how the plans compare to other affordable providers.

Save Up to $32.50/Month on Google Fi Wireless’ Unlimited Plans

Now through September 10, Google Fi Wireless (Team Clark’s Review) is offering a 50% discount on any unlimited plan for 12 months. The deal is available to new customers who bring their own Google Pixel phone.

Here’s what you’ll get with each eligible plan: 

Unlimited Essentials

Unlimited talk, text and data (30GB high-speed)

Full connectivity for select smartwatches

Unlimited Standard

Unlimited talk, text and data (50GB high-speed)

Full connectivity for select smartwatches

25GB of high-speed hotspot tethering

Data, calls and texts within Canada and Mexico

Free calls to Canada and Mexico from the US

Unlimited Premium

Unlimited talk, text and data (100GB high-speed)

Full connectivity for select smartwatches

Connectivity for tablets and laptops

50GB of high-speed hotspot tethering

Data, calls and texts within Canada and Mexico

Free calls to 50+ destinations from the US

Unlimited roaming data in 200+ destinations (50GB high-speed)

6 months of YouTube Premium

100GB of Google One storage

Google Fi Wireless’ current promotion applies to both single-line and multiline accounts. If you join with multiple lines, each person will need to bring their own Google Pixel and choose an eligible plan to receive the discount. 

In the table below, you can see the monthly discounted prices per line for each unlimited plan.

Unlimited EssentialsUnlimited StandardUnlimited Premium

1 Line$17.50$25$32.50

2 Lines$15$20$27.50

3 Lines$13.50$15$22.50

4+ Lines$11.50$12.50$20

Once you activate your service, you’ll automatically receive the discount for the first 12 months. After 12 months, plan rates will return to normal. 

To learn more before you switch, read our full Google Fi Wireless review. For more information on the latest deal, visit the company’s website here. 

Google Fi Wireless: An Affordable T-Mobile MVNO

If you aren’t familiar with Google Fi Wireless, it’s a mobile virtual network operator (MVNO) that utilizes T-Mobile’s service towers. At Clark.com, we recognize Google Fi Wireless as the best overall international phone plan. 

Compared to T-Mobile’s postpaid cell phone plans, Google Fi Wireless offers excellent prices. For a single line, T-Mobile’s postpaid unlimited plans begin at $50 with autopay (plus taxes & fees). The same T-Mobile plan is available for four lines for $100/month.

At regular rates, Google Fi Wireless’ Unlimited Essentials is $10 cheaper for four lines. However, with the current promotion, you can get four lines on Unlimited Standard for $50/month for the first 12 months. It includes the same amount of high-speed data as T-Mobile’s Essentials, plus smartwatch connectivity, data in Mexico/Canada, and 25GB of mobile hotspot. 

Compared to other prepaid cell phone service providers on T-Mobile’s network, Google Fi Wireless still offers competitive prices. While single lines with unlimited data can find better deals with other service providers at regular rates, the current 50% discount makes Google Fi Wireless much more competitive, as long as you have an unlocked Google Pixel to bring with you.

To compare, here are a few of our other favorite unlimited plans that utilize the same service towers: 

Mint Mobile (Team Clark’s Review): The unlimited plan is available annually for $30/month at regular rates. It includes unlimited data (speeds may slow with network congestion after 50GB) as well as 20GB of mobile hotspot. For a limited time, new customers can get any plan for $15/month, which is a great deal for unlimited data.

US Mobile (Team Clark’s Review): On the Light Speed network, monthly unlimited plans begin at $25 for 70GB of high-speed data and 10GB of mobile hotspot data. Annually, the same plan is available for $270 ($22.50/month) at regular rates. New customers can get the same annual plan for $199 their first year for a limited time.

Tello Mobile (Team Clark’s Review): For $25/month, customers can get an unlimited data plan that includes 50GB of high-speed data and 10GB of hotspot data. However, after 50GB of data usage, speeds will be throttled (significantly reduced) until the next billing cycle.

Be sure to check out our full Google Fi Wireless review before you purchase a plan. If you do decide to switch to Google Fi Wireless, follow our step-by-step guide to changing cell phone service providers.

For more options, see our top picks for the best cell phone plans available now. Additionally, you can use our new Cell Phone Plan Finder to quickly compare plans that will meet your needs.

Are you thinking about switching to Google Fi Wireless? Let us know in our Clark.com Community!
The post Google Fi Wireless Deal: 50% off Unlimited for 12 Months appeared first on Clark Howard.

If you like saving money on groceries, Aldi is the place to shop. This discount grocer features rock-bottom prices on the most popular grocery items as well as organic meats, milk and specialty cheese.

In addition to its fantastic prices on all your favorite grocery items, Aldi features special deals each week in its Aldi Finds ad. This week’s ad features Halloween home decor, kitchen goods, pajama sets and more!

These items are available in limited quantities while supplies last, so you’ll want to shop early to get the best selection! If you’re an Instacart+ member, you qualify for free curbside pickup and delivery on orders of $35 or more. This includes Aldi’s middle aisle items!

Note that the ad’s start dates may vary slightly by location, but you can enter your zip code here to find the exact date these items will be available at your store. See all the deals at Aldi this week here!

Save With the Best Deals From “Aldi Finds” Available Right Now

Kirkton House cookbook stand

Take the hassle out of following a recipe! Find a similar stand at Walmart for $12.99.
Kirkton House bag and wrap organizer for $14.99

Organize your wraps in style! Find a similar organizer at Walmart for $15.29.
Crofton ceramic food container for $7.99

These containers are great for meal prep! Compare to $14.99 at Genicook.

Kirkton House 2-in-1 desk or couch caddy for $14.99

Stay organized and comfy with this caddy. Find a similar style at Walmart for $19.99.
Halloween Collection mugs for $3.99

There’s nothing like a new fun mug for the fall! Compare to a similar mug at World Market for $9.99.
Kirkton House 20″ x 34″ Crystal accent rug for $7.99

This new rug will put you in the holiday spirit! Compare to a similar themed rug for $15.99 at Kohl’s.
Serra Ladies’ 3-piece pajama set for $12.99

This set will transition well from summer to fall! Find a similar set at Amazon for $52.
Visage Ionic hairdryer for $19.99

Ionic hairdryers reduce drying time and frizz! You can find similar dryers for $41.99 at Sally Beauty Supply.
Adventuridge Metallic Copper Thirst Crusher tumbler – 40-oz. for $9.99

40 ounces will crush your thirst in short order! Compare to the Cruiser at Corkcicle for $31.50.
Joie Laundry Care Sloth dryer balls for $4.99

These dryer balls will bring a smile every time you do laundry! Compare to $10.49 at Amazon for a set of 3.
Pembrook spiral notebook – 3-pack for $8.99

Just in time for back to school! Compare to a 3-pack at Target for $18.99.

Kirkton pastel Halloween throw for $4.99

This is available in multiple patterns! Compare to $11.99 for a similar item at Kohl’s.

Serra ladies knit sandals for $7.99

Compare to $15.99 for a similar item at Amazon. 

Welby hot/cold wrap for $9.99

Amazon has a similar hot/cold wrap for $19.99. 

For even more great deals and discounts, sign up for the Clark Deals daily newsletter!The post The Best Deals of Aldi’s Middle Aisle in August appeared first on Clark Howard.

Do you grocery shop at Kroger regularly?

If so, you were likely aware that Kroger had one of the best co-branded grocery credit cards on the market, offering up to 5% on your purchases with the grocer. Unfortunately, that is soon to be a thing of the past.

The Kroger Rewards World Elite Mastercard has been discontinued due to the end of the partnership between Kroger and U.S. Bank.

U.S. Bank will no longer issue this Kroger Rewards World Elite Mastercard

U.S. Bank, the card issuer, stopped taking new applications for the card in May 2026. And reports indicate that existing cardholders will have their Kroger credit cards replaced with a U.S. Bank Smartly Visa Signature® Card sometime between August and October 2026. Keep an eye out for a notification about this change if you’re an existing Kroger cardholder.

The Smartly card does offer unlimited 2% cash back, which meets money expert Clark Howard’s recommended cash back target for everyday spending, so it may be worth keeping open. And those of you who do your regular banking with U.S. Bank’s Smartly checking and savings accounts may be eligible to earn even more cash back thanks to their tiered rewards program.

But, for most Kroger customers, this change will result in a steep drop in cash back earnings on grocery purchases.

In this article, I’m going to show you a few credit cards that you could pivot to in an effort to maximize your spending at Kroger.

4 Cards That Could Replace Your Old Kroger Credit Card

If you’re a Kroger loyalist, I’ll be upfront and honest: You’re probably not going to completely replace the benefits you enjoyed with the U.S. Bank co-branded card. It was a very good card for regular Kroger shoppers.

But there are still some good credit cards on the market that reward spending in U.S. Supermarkets. And Kroger’s merchant code should qualify for the bonus rewards for most of them.

Here is a rundown of the cards I like best as a potential grocery spender replacement for your wallet:

The Top Pick

Blue Cash Preferred® Card from American Express

card_name

Annual Fee:

$0 intro annual fee for the first year, then $95. (See Rates & Fees)

Rewards Program Details:

Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.

Terms apply.

If you’re serious about getting the most cash back from your U.S. supermarket spending, the card_name offer is going to be extremely hard to beat. Though this card does carry a $0 intro annual fee for the first year, then $95 (See Rates and Fees), you’ll make that money back — and then some — if you’re a regular shopper at U.S. supermarkets such as Kroger.

The cap for annual spending on the 6% cash back reward is $6,000 in eligible purchases. If you spend an average of $500 per month, you’ll earn $360 in a year. Once you’ve crossed the $6,000 threshold, rewards drop to 1% on grocery purchases.

This card also offers 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash back is received as Reward Dollars, which can be redeemed as a statement credit and at Amazon.com checkout. Terms apply.

Others To Consider

card_name →

Capital One Savor Cash Rewards Credit Card

Annual Fee $0

Rewards Program: 3% Cash Back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services. 5% Cash Back on hotels, vacation rentals and rental cars booked through Capital One Travel. 8% Cash Back on Capital One Entertainment purchases. 1% Cash Back on all other purchases.

card_name →

Blue Cash Everyday® Card from American Express

Annual Fee $0 (See Rates & Fees)

Rewards Program: Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.

Terms apply.

Learn More →

NIH Credit Union Visa® Signature Cash Rewards

Annual Fee $0

Rewards Program: Earn 4% cash back rewards points in the first 12 months, and 3% thereafter in these categories:

Automated Fuel Dispensers and Service Stations
Electric Vehicle Charging
Groceries
Rideshare/Taxi/Limo
Utilities (including streaming)
Wholesale Clubs

All other purchases earn 1%.

Bottom Line for Kroger Shoppers

The 5% back offered by the co-branded U.S. Bank card was great. But, like most really good things in the credit card world, it is coming to an end.

If you were earning a significant amount of cash back on your Kroger purchases, you are likely a good candidate to consider one of the cards above to continue maximizing your spending with the grocer.

But if you found that you didn’t use the co-branded card as much as you anticipated, you may actually be a candidate to simply stick with the Smartly card for everyday spending.

Did you have this Kroger credit card? What is your plan for replacing it? We’d love to hear your thoughts in the Clark.com community.

Not all available financial products and offers from all financial institutions have been reviewed by this website.

To see the rates and fees for the American Express cards featured, please visit the following links: Blue Cash Preferred® Card from American Express: See Rates and Fees; Blue Cash Everyday® Card from American Express: See Rates and Fees.

The post What Kroger Customers Should Do Now That the Grocer’s Credit Card Is Gone appeared first on Clark Howard.

Here’s what almost nobody was predicting a year ago: Interest rates would go up, not down, and it would happen at the long end of the curve while the Fed sat on its hands.

Back in September 2025, the story was simple. The Fed was about to start cutting, so lock in a Certificate of Deposit (CD) before yields slide. The Fed did cut three times in the back half of 2025, landing the federal funds rate at 3.50%-3.75%. Since then, it’s held steady at every meeting in 2026, including a 9-3 vote in late July where three officials actually pushed to hike. In that same stretch, the 30-year Treasury yield climbed above 5.1%, its highest level since 2007, and a fresh 30-year bond auction in July drew the weakest demand in nearly two decades.

Long-term bond rates have climbed even though the Fed hasn’t raised its benchmark rate at all. Most analysts point to a few things driving that, including worry that inflation isn’t fully under control, concern about the growing federal budget deficit, and a wave of corporate and AI-related bond issuance now competing with the government for the same investor money. That combination is what traders call a bear steepener: short-term rates holding flat while long-term rates climb on their own.

Why an Unexpected Move Like This Matters for Your Cash

That’s created a real opportunity for savers.

A high-yield savings account or money market fund pays whatever the going rate is today, and that rate drops the moment the Fed cuts.

A CD locks in today’s rate for the term you choose, no matter what happens next. Since long-term rates rose for reasons almost nobody expected, a CD is how you lock that increase in for years instead of watching it float away with the next rate cut.

Vanguard’s Brokered CD Rates Right Now

Rates change by the day, but here’s a snapshot of Vanguard’s non-callable brokered CD rates as of August 6, 2026, to show what the curve looks like today:

Check Vanguard’s live CD rates before you buy, as they fluctuate throughout the trading day.

Notice the shape of that curve. A year ago, longer CDs paid about the same as, or even a little less than, short-term CDs, because everyone expected rate cuts to keep coming. Now the curve slopes up steadily out to five years, locking in longer actually pays you more. That’s the market’s way of saying long-term uncertainty, about inflation, the deficit, and where rates head next, is real, and it’s paying you to take it off the table for a while.

High-yield savings accounts are running close behind, in the 4.00%–4.10% APY range, but again, that number moves with the Fed and with each bank’s mood. It’s not locked in.

Use the CD interest calculator to see exactly what any given rate and term would earn you before you commit.

What About a CD Ladder?

A CD ladder splits your money across several CDs with staggered maturities, say 12, 24 and 36 months, so you’re never locked into a single rate or a single maturity date. When each rung matures, you decide whether to spend it, park it in savings or roll it into a new CD at whatever the best rate is at that moment.

A year ago, the case for a ladder was about hedging against an expected drop in rates, and the tradeoff was that a flat yield curve didn’t reward you much for going long. That’s flipped. Vanguard’s curve now climbs steadily all the way out to five years, so a ladder today actually pays you more the further out you stretch, not less.

Why it works in this environment:

You keep regular access to cash as each rung matures, instead of locking everything away at once.

You capture today’s higher rates on the medium-term rungs, which are paying more than short-term CDs for the first time in a while.

You’re insulated either way. If the Fed eventually cuts and long rates come back down, you’re glad you locked some in now. If inflation and deficit worries keep pushing rates up, you’ll have cash coming due on a rolling basis to reinvest at the better rate.

The tradeoff:

More moving parts to track, since you now have several maturity dates instead of one.

Going long doesn’t come with a big penalty right now, but it’s not a one-way bet either. If the Fed does eventually cut and long-term worries fade, a 5-year rung locked in today could look less exciting by year three.

Use the CD Ladder calculator to map out how a ladder would work with your own numbers and timeline.

Where Clark Howard Says to Actually Buy a CD

Money expert Clark Howard’s advice on where to shop hasn’t changed, and if anything, this rate environment makes it more relevant. He points to two places, and only two places, for CD money.

Brokered CDs through a discount broker. His three favorites are Vanguard, Fidelity and Schwab. When you buy a CD through one of them, you’re buying a bank-issued CD on the brokerage’s platform rather than opening an account directly with that bank. You still get full FDIC insurance on the underlying CD. The advantage is that these brokerages deal on the wholesale side with banks and credit unions, and because of the volume of money they can bring to the table, they can often land you a better rate than that same bank would offer you walking in the door. If you already have a relationship with one of the three, this is usually the easiest path to a strong rate.

An online bank, shopping rates directly. The second option is to go straight to an online bank and compare rates yourself. Online banks post their CD rates openly, so it’s easy to shop the market, and the best deals tend to show up in the one- to five-year range.

Where Clark says NOT to go: a big, brand-name mega bank. They pay next to nothing on savings and CDs while charging 25% or more on credit card balances. You get the same FDIC protection for a better rate elsewhere.

The Rollover Trap Clark Wants You to Watch For

Clark also warns about CDs that automatically roll over into a new term unless you take action.

Here’s how it plays out. You lock in a one-year CD at a strong rate, say something in the high 4% range. A year passes. You don’t notice the maturity date, and the bank automatically renews you into another one-year CD, except this time at whatever rate the bank feels like offering, which could be a full point or more lower. Clark calls this what it is: a bait and switch, and a dirty one at that.

The fix is simple. Before you buy any CD, confirm whether it auto-renews by default or requires you to opt in to a new term. You want to come out of a CD as a free agent, free to shop the market again, not get quietly re-signed for another one to five years at a rate the bank picked for you.

Final Thoughts

Clark’s core message hasn’t shifted: Your money should work as hard as possible while staying as safe as possible, and a CD is one of the few places that can deliver both a guaranteed rate and FDIC insurance.

Nobody can promise this rate environment holds. Lock in a CD now, and you keep that guaranteed rate for the full term, whatever happens with the Fed, inflation, or the deficit next.

A few ways to think about your own money:

If you’ll need the cash soon, stay short-term or keep it liquid in a high-yield savings account.

If you want a guaranteed rate for years regardless of what the Fed does next, lock in a longer CD now.

If you want both, build a ladder so part of your money stays accessible while another part is locked in at today’s rate.

Whichever path you choose, buy it through a brokerage like Vanguard, Fidelity or Schwab, or shop it directly with an online bank, and read the fine print on renewal terms before you sign up. Skip the mega bank, and don’t let a CD quietly roll you into another term at a rate you didn’t choose.
The post Is Now the Time To Get a CD or a CD Ladder? appeared first on Clark Howard.

You spend 40 years learning how to save money. Then retirement asks you to do the opposite, and almost nobody teaches you how.

That’s the problem the bucket strategy exists to solve. Instead of looking at your retirement savings as one big number that needs to last, you divide it into a few buckets, each with its own job. One holds the money you’ll spend first. The others generate income, provide stability or continue growing for the decades ahead. The payoff is a retirement portfolio that’s easier to understand — and easier to turn into a reliable monthly paycheck.

The idea has been around for decades, and you’ll find plenty of versions of it. Some advisors use three buckets organized by time: money for now, money for soon and money for later. Others use as many as five or six. There are competing schools of thought on the mechanics too, like whether you refill your cash bucket on a schedule, only after good market years or through regular rebalancing.

Wes Moss, a fiduciary financial advisor and host of Ask an Advisor on the Clark Howard Podcast, uses a four-bucket system with his clients.

The Four Buckets

Wes sketches four buckets for clients because the drawing does something a brokerage statement can’t.

“Retirement buckets are one of my favorite ways to make a complex portfolio instantly understandable,” Wes says. “I like to sketch four simple buckets: Cash/Money Markets for safety and short-term spending, an Income bucket for bonds and other steadier-yield ‘dry powder,’ a Growth bucket for long-term stock appreciation and dividends, and an Alternative bucket for things like REITs, energy pipelines, commodities and private investments. That visual helps retirees see at a glance how their money is working for growth, income and safety instead of staring at a long, intimidating list of holdings.”

Cash. Money market funds, high-yield savings accounts and short-term CDs. This bucket exists for safety, control and immediate access. Its job isn’t to generate returns. It’s there so you know you can cover your next several months of expenses regardless of what the market is doing.

Income. Bonds and other steadier-yield investments. Think Treasuries, investment-grade corporate bonds and short-duration bond funds. This bucket throws off interest, but its bigger job is providing spending money during market downturns so you aren’t forced to sell stocks after they’ve fallen.

Growth. Stocks, held for long-term appreciation and dividends. For most retirees, this is the largest bucket, because a retirement that might last 30 years still needs an engine.

Alternatives. REITs, energy pipelines, commodities and private investments. These behave differently from stocks and bonds, and many of them pay out more income than typical stocks.

Before Retirement

Before retirement, everything the buckets produce — dividends, interest and distributions — gets reinvested to compound.

The years leading up to retirement are when the mix shifts. The paycheck that made a thin cash bucket safe is going away, so the job is to gradually move weight from growth into the cash and income buckets, building your safety before your first withdrawal rather than after. Doing this ahead of time matters because the alternative is to create safety by selling stocks after they’ve already fallen.

Even then, growth typically remains the largest bucket. A retirement that can run 30 years is still a long-term horizon, and the point of the shift isn’t to abandon stocks. It’s to build enough safety around them that you never have to sell them at a bad time.

How the Buckets Create a Retirement Paycheck

Then the system starts working in reverse.

“When retirees are building a plan for their family, they need to turn a pile of investments into a reliable paycheck they can actually live on,” Wes says. “In the distribution phase, the beauty of the bucket system is that the ‘gates’ of those buckets finally swing open. Dividends, interest and distributions are no longer just being reinvested like in your accumulation years. They’re flowing out to you on purpose.”

Each invested bucket creates its own income stream. Growth contributes dividends and periodically harvested gains, income contributes interest, alternatives contribute distributions, and the streams merge into one deposit that hits your checking account every month, right alongside Social Security and any pension or rental income.

“When you see those streams lining up alongside Social Security, maybe a pension or rental income, it becomes clear you’re not just hoping markets cooperate,” Wes says. “You’re living off a diversified paycheck you designed.”

How Much Cash Do You Actually Need in Retirement?

Wes pushes back on the question itself.

“Cash and dry powder aren’t the same thing, and conflating them is where most retirees get confused,” he says. “Once you’re actually retired, somewhere between six and 12 months of living expenses sitting in cash is plenty for most people. That bucket exists purely for control, safety and immediate access. It’s not there to grow. It’s there so you never have to think twice about paying this month’s bills.”

That six-to-12-month recommendation surprises a lot of people. Plenty of bucket-strategy articles will tell you to hold two or three years of expenses in cash, and holding that much isn’t wrong so much as expensive, because that much cash drags on your returns for decades.

The number Wes actually wants you to watch is bigger than your cash bucket.

Dry Powder: The Three-Year Rule

Dry powder is the total amount you hold in safe, liquid assets, and it spans two buckets. Your cash counts. So does the high-quality bond portion of your income bucket, your Treasuries, investment-grade corporates and short-duration bond funds.

“My rule of thumb is at least three years of your portfolio’s annual withdrawal need, meaning whatever you need after Social Security and any pension income, held in safe, liquid assets,” Moss says. “Those bonds aren’t there to dazzle you with returns. They’re there so that when the market drops 20%, which happens roughly every four to five years, you have somewhere else to draw income from besides your stock portfolio.”

Your withdrawal need is not your total spending. It’s the gap your portfolio has to fill after Social Security and pension income. A couple spending $80,000 a year with $45,000 coming from Social Security only needs their portfolio to produce $35,000. Three years of dry powder for them is about $105,000, not $240,000. Strong guaranteed income shrinks the amount of dry powder you need, which is one more reason the timing of your Social Security claim matters.

Wes wants every retiree to run one test. Across your cash bucket and the safe bonds in your income bucket combined, do you have at least three years of withdrawals covered?

“If you do, you’ve built yourself real breathing room,” Moss says. “You can sit tight during a downturn, let your dry powder fund your spending, and give your stocks the time they need to recover, instead of being forced to sell equities at exactly the wrong moment. That’s the whole point of the bucket system. It turns an abstract fear about market crashes into a concrete, workable plan.”

Everything about the bucket strategy is designed to prevent one costly mistake: selling stocks during a market crash. Shares sold at the bottom never get the chance to recover, meaning they also miss the rebound that often follows. That’s why retirees build cash and high-quality bonds into their portfolios before they need them.

See Your Own Buckets

Reading about the bucket strategy is one thing. Seeing how it could work with your own retirement savings is another.

Whether you’re already retired or just want to see what a retirement setup could look like, enter what you hold (or would hold) in each of the four buckets and set the rate each invested bucket draws down. Income, growth and alternatives generate the money you live on, flowing into your checking account alongside Social Security and any pension or rental income, just like a paycheck. Your cash bucket sits off to the side in high-yield savings. Together with your income bucket, it forms your dry powder, the pool that lets you ride out a downturn without selling stocks.

Total retirement nest egg
$1,000,000
$950,000 invested plus $50,000 in cash

The four-bucket retirement system with income flow and dry powder
Income, growth and alternative buckets generate money at their own withdrawal rates, flowing into a checking account alongside Social Security and pension income as one monthly paycheck. A cash bucket sits detached below the income bucket in high-yield savings. A dashed ring around the income and cash buckets marks the dry powder, measured in years of portfolio withdrawals against a three-year minimum.

DRY POWDER: CASH + INCOME

Income
26.3% of invested
4.5% bond yield

Growth
57.9% of invested
4.0% total return harvest

Alternatives
15.8% of invested
5.5% distribution yield

Cash
7.2 months of expenses
at $6,958/mo • aim for 6 to 12
high-yield savings, CDs,
money markets
Sits ready. Not part of the monthly flow.

$300,000
7.2 years of withdrawals
at $41,500 per year
✓ covers the 3-year minimum

$938/mo
$1,833/mo
$688/mo

Social Security

/mo

Pension, rental

/mo

Checking account
your monthly paycheck
$6,958/mo
$83,500 per year
$3,458/mo from your portfolio
$3,500/mo from Social Security & pension

Assumptions: annual rate each invested bucket sends to your checking

Income yield
%

Growth total return harvest
%

Alternatives yield
%

Growth is a total return harvest: dividends plus periodically sold gains, drawn at a sustainable rate rather than a dividend yield. The cash bucket is for control, safety and immediate access. It isn’t there to grow, so it isn’t modeled as generating income.

Your nest egg is all four buckets combined. Bucket percentages are shares of the three invested buckets. Dry powder counts the full income bucket; strictly speaking, only high-quality, short-to-intermediate bonds should count, so treat the gauge as a ceiling. Rates are illustrative starting points, not projections or advice, and the growth harvest does not model market volatility or sequence of returns.

A note on the assumptions. The default rates are illustrative starting points, not predictions. The growth bucket uses a total return harvest, meaning dividends plus periodically sold gains drawn at a sustainable rate, because dividends alone understate what your stocks contribute. And the dry powder gauge counts your full income bucket, so if part of yours sits in high-yield bonds or long-duration funds, your true dry powder is somewhat smaller than the number you see.

What Buckets Don’t Do

Buckets are a way of organizing an allocation, not a substitute for one. A four-bucket portfolio with 90% in growth is still an aggressive portfolio, whatever you call the containers.

The system also doesn’t remove the need for maintenance. After strong market years, many retirees periodically rebalance by trimming appreciated investments and refilling their cash and income buckets. That way, they’re preparing for the next downturn instead of reacting to it.

Buckets don’t eliminate market risk, and they won’t guarantee investment returns.

Final Thoughts

Buckets make retirement income easier to understand and easier to manage. Instead of wondering where next month’s paycheck will come from when markets get rocky, you’ll already know the answer. Every bucket has a purpose, every dollar has a job and your retirement plan becomes something you can stick with through good markets and bad.
The post How To Turn Your Retirement Savings Into a Monthly Paycheck (Bucket Strategy Explained) appeared first on Clark Howard.

Every year, millions of people turn 62 and face the same decision. Take Social Security now, wait for full retirement age, or hold out until 70 for the largest possible check.

Regular readers already know where Clark stands on this. He says: “The odds overwhelmingly show that a lot of us are going to live a lot longer than we thought. So the best time to take Social Security is to wait as long as you possibly can.”

“The largest percentage of people Social Security-eligible start taking Social Security at 62 than at any other age,” Clark says. “Almost no one, from a financial standpoint, should take Social Security at age 62.”

And of course there are ways to calculate how long you would have to live to collect more by waiting.

A Simpler Way to Look At It

Wes Moss, a fiduciary financial advisor and host of Ask an Advisor on the Clark Howard Podcast, agrees with the math but widens that short list of exceptions into a full framework.

“My rule of thumb is simple,” Wes says. “Take Social Security when you NEED the money, not when a YouTuber says to take it, and not when a calculator says to maximize it.”

The math behind delaying is real. Waiting to claim adds roughly 7 to 8 percent to your benefit for every year you hold off, up to age 70. That’s a guaranteed, government-backed, inflation-adjusted return that nothing in the market can match without taking on risk. Wes doesn’t dispute any of that.

“Yes, that guaranteed 7 to 8 percent annual bump for delaying is hard to beat. It’s risk-free, government-backed, and inflation-adjusted for life. But the math isn’t the whole story.”

What the Calculators Leave Out

A Social Security breakeven calculator treats this decision as an isolated math problem. Real retirements don’t work that way. Wes points to five factors that matter as much as the delay credit, sometimes more.

Are you still working? Claiming before full retirement age while earning significant income triggers the earnings test, which can withhold part of your benefit. It also raises your adjusted gross income, which can make more of your benefit taxable. For most people who are still working, waiting until full retirement age is the right choice regardless of how the longevity math works out.

Does claiming early protect your portfolio? If starting benefits at 62 or 63 lets you lower your withdrawal rate from your retirement accounts from an aggressive 7 percent to a sustainable 4 percent, that’s a genuine win. A portfolio that survives 30 years of withdrawals is worth more than a larger Social Security check down the road.

Are you the higher-earning spouse? This one gets missed constantly. Delaying to 70 doesn’t just grow your own benefit; it locks in a larger survivor benefit for your spouse for the rest of their life. This decision often shouldn’t be made by looking at one person’s numbers in isolation.

What does your health and family history look like? Someone whose parents both passed away in their early 70s has good reason to consider “enjoying the money sooner” than someone from a family of centenarians. Longevity assumptions built into a calculator are averages. Your family isn’t an average.

How much does cash-flow stress cost you? Some people sleep better with guaranteed income sooner, even when the spreadsheet says waiting nets more lifetime dollars. That peace of mind is a legitimate part of the equation, even if it never shows up in a breakeven calculator.

The Rule, Restated

Wes sums up the alternative to chasing the biggest possible number:

“Take Social Security when your plan needs the money, based on your income, your spouse’s needs, your withdrawal rate, your health, your longevity, your cash flow, your stress level, and your retirement timeline. Make it part of a real retirement plan, not a guess. That’s how you optimize Social Security.”

The distinction he’s drawing is between optimization and maximization. Maximizing means chasing the single largest possible benefit, which almost always means waiting until 70. Optimizing means figuring out what your specific retirement actually needs, then claiming on the timeline that supports that plan.

For some people, those two things point in the same direction. For many others, they don’t. The best Social Security decision isn’t the one that produces the biggest monthly check —it’s the one that gives your overall retirement plan the greatest chance of succeeding.
The post A Simple Rule for When To Take Social Security appeared first on Clark Howard.

Do you have a credit card that just doesn’t fit in your life anymore?

You may have a credit card with an annual fee that is too high, or you may think you’ve outgrown your “basic” credit card and are ready for one with a better menu of benefits.

Whether you’re looking to move up or down the credit card ladder, you may be a candidate for a product change request.

In its most basic definition, this is asking your card issuer to issue you a different card to replace your existing one without applying for a new line of credit.

Policies for product changing vary from issuer to issuer. Some of them will let you hop around, others have a “card family” path you must follow, and others simply won’t allow you to do it at all without a new application.

In this article, we’ll talk more about what a product change is, go over some questions you should ask yourself to see if you’re a candidate for one, and also take a look at the pros and cons of completing one.

Table of Contents

What Is a Credit Card Product Change?

Pros and Cons to a Product Change

Questions to Ask Before Completing a Product Change

What Is a Credit Card Product Change?

Let’s start this conversation by making sure we’re all on the same page.

A credit card product change is when you ask your card issuer to switch your existing credit card to a different card they offer without opening a new account or closing the one you already have.

This is often referred to as a credit card “upgrade” or “downgrade” depending on the direction you’re moving.

Your current credit line and account history are usually carried forward as a part of this requested change. You may even keep the same account number.

This is different from applying for a new credit card and does not cancel your existing credit card. There are some pros and cons to requesting a product change versus submitting a new application and canceling an old card. Let’s take a look.

Pros and Cons to a Product Change

Now that we have a better understanding of what a product change accomplishes, it’s time to decide if it’s actually a good idea.

Reasons for requesting an upgrade or downgrade can vary.

A downgrade is a common way to get out of a high annual fee card without canceling the line of credit. An upgrade is usually most useful when seeking a higher tier of benefits without applying for a new card.

Like most things in the credit card space, there is room for nuance and strategic debate. It largely comes down to individual financial factors that don’t always lend themselves to blanket advice.

With that in mind, I think it’s best to lay things out in a “pros versus cons” analysis so that you can determine how they apply to your personal situation.

Pros to a Product Change

You can “right a wrong” in your wallet. If you’re paying too much for an annual fee on a card that you don’t use enough to justify, using a product change to downgrade to a lower or no-annual-fee card is a great way to eliminate that fee.

It is better for your credit score than canceling your existing card. You will avoid the potential hit to your score from losing the account history and available credit utilization on the existing card. This is something to especially consider when you’re trying to ditch a high-annual-fee card and cancellation seems like the “easy way out” of the situation. You may find a path to a low or no-annual-fee option as a product change.

You likely will avoid a new “hard inquiry” on your credit report. A product change will usually allow you to get a fresh card without going through application hoops like you would with a new card. This is especially useful when it comes to avoiding inquiries on your credit report. Too many of those will hurt your credit score.

Cons to a Product Change

You may not be able to get the card you really want. Just because you’ve decided that you no longer want the existing card in your wallet doesn’t necessarily mean the card issuer will change it to the card you want instead. Many issuers have a rigid “card family” rule for product changes that will require you to stay within a small subset of their card offerings for changes.

You may miss out on lucrative sign-up bonuses from your “new” card. Since a product change is not a new application for a card, oftentimes you’re deemed ineligible for whatever the going welcome offer is on your new card. With travel cards, these offers can often be worth more than $500.

Downgrading could cost you benefits you use. We talked about the benefits of eliminating an unwarranted annual fee as a pro to a product change, but it’s worth talking about the cons of a downgrade, too. Premium travel cards are loaded up with travel protections, premium benefits, lounge access and more. Changing to a card with a skinnier menu of benefits could eliminate perks you legitimately used.

Questions to Ask Before Completing a Product Change

Now that you understand what a product change is and the pros and cons of making one, I have a list of questions you should ask yourself (or your card issuer) before deciding whether to move forward with a request.

Do I actually use my existing credit card’s benefits and rewards program? If the answer is yes, you may want to consider keeping things the same.

Am I even eligible for a product change at this time? Some card issuers require that you hold your existing card for a period of time (at least a year, in many cases) before you’re even eligible to request a product change.

Does my card issuer offer a card better suited to my spending habits? If so, that may be a card worth requesting a change. But, as we’ve mentioned, many card issuers require that a product change be within the same “family” of cards. So check with them first to see if moving from the card you have to the card you want is even possible.

Am I comfortable with the annual fee situation? Do some quick math to understand the upside of rewards and benefits you’d use versus the cost of a card’s annual fee. You may have a card that is too expensive for your usage, or you could desire a card that has an annual fee that is just too expensive for how you’d use it. The “math needs to math” on any potential change request.

Once you clear these basics, some other situational questions that could be on your mind include:

Will I miss out on a lucrative bonus by product switching instead of submitting a new application?

Do I have a reason to protect my credit score (buying a house, refinancing a mortgage, etc.) by making a product change rather than a new application?

If you’ve decided you may be a fit for a change, you can call the number on the back of your card and simply ask what options are available.

Good questions to ask before committing to a product change include:

Will a hard inquiry to your credit occur?

What happens to your existing rewards balance?

If downgrading, can you get a prorated refund for a recently paid annual fee?

Bottom Line

A product change is often the smart move when you want to escape an annual fee and avoid the hit of closing an account.

It can also be an option for people who want to “upsize” their credit card without risking a new credit inquiry.

In either case, just make sure the new card actually fits your spending and that the math of a potential change works in your favor.

Have you completed a credit card product change before? We’d love to hear about your experience in the Clark.com community.
The post Should You Product-Change Your Credit Card Instead of Applying for a New One? appeared first on Clark Howard.