NerdWallet's Smart Money Podcast
What to Do When the U.S. Gets Downgraded and Your Travel Credit Card Stops Paying Off
Thu, 29 May 2025
Learn what a U.S. credit downgrade means for your portfolio, plus find out when it might be time to cancel your travel credit card. What does the U.S. credit rating downgrade mean for your investments? Should you cancel your travel credit card if the perks no longer justify the fee? Hosts Sean Pyles and Elizabeth Ayoola discuss the U.S. government’s recent credit downgrade by Moody’s and how it could impact markets, borrowing costs, and long-term economic stability. Joined by NerdWallet news writer Anna Helhoski and investing writer Sam Taube, they break down the downgrade’s broader implications and offer tips on navigating bond yields, safe investment vehicles, and economic uncertainty. Then, Sean and Elizabeth are joined by credit cards Nerd Melissa Lambarena to answer a listener’s question about canceling a high-fee travel credit card. They explore the pros and cons of closing accounts, how to audit whether a card’s perks are still worth the fee, and alternatives like downgrading to a lower-fee card. They also cover how to track credit card value, minimize credit score impact when making changes, and optimize benefits like lounge access, rental car perks, and more. Card benefits, terms and fees can change. For the most up-to-date information about cards mentioned in this episode, read our reviews: United Quest card review: https://www.nerdwallet.com/reviews/credit-cards/united-quest United Explorer card review: https://www.nerdwallet.com/reviews/credit-cards/united-explorer NerdWallet offers a Treasury account through a partnership with Atomic: https://www.nerdwallet.com/lp/treasury-account What is a credit card product change and how does it work? Instead of opening a new account, you could ask to change to a different card. Here's when and how to do so: https://www.nerdwallet.com/article/credit-cards/credit-card-product-change In their conversation, the Nerds discuss: US credit rating downgrade, Moody’s downgrade 2024, what happens if US defaults, effects of US credit downgrade on investments, treasury bond yields 2024, how to evaluate credit card perks, downgrade travel credit card, how to keep a high credit score without using credit cards, short-term Treasury bills, Treasury accounts vs savings accounts, investing during economic uncertainty, Moody’s credit rating explained, credit rating agencies, U.S. debt ceiling 2024, credit card points strategy, tracking credit card rewards, how to downgrade a credit card, budgeting for credit card annual fees, short-term treasuries vs CDs, best way to manage multiple credit cards, using perks to offset credit card fees, and investing during economic downturns. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices
What does the U.S. credit downgrade mean for my investments?
Of course. Thanks for having me on.
And thank you, Ana. Of course. Up next, we answer a listener's question about switching up their credit cards. But before we get into that, a reminder to send us your money questions. Do you want to know the smartest way to budget for your summer vacation? Or are you in the market for a new credit card but aren't sure how to find the one that's best for you?
Leave us a voicemail or text us on the nerd hotline at 901-730-6373. That's 901-730-NERD. Or email us at podcast at nerdwallet.com.
In a moment, this episode's money question. Stay with us.
We're back and we are answering your money questions to help you make smarter financial decisions. This episode's question comes from Keith and he sent us an email. Here it is. I have a question about the dreaded credit cards. We have a United Quest visa I acquired because I was traveling via air for work on a regular basis.
So the $350 annual fee and a subscription to the United Club made sense, especially since I could bring my wife when we travel together. However, recently, United changed its policy for the United Club membership and increased their fees to $750 per individual and $1,450 for an individual with access for two guests, making it so expensive I'm no longer interested.
We'd love having the available credit of $16,000, but would pay $100 a year for it. Our 2025 goal is to get off of credit cards other than using one for monthly bills. Should we cancel? I am thinking it's a good thing to have the available credit. We have five now empty cards. We will be 100% no debt this fall minus the mortgage. I have y'all to thank in part for that, by the way. Mahalo nui loa.
Thanks for your thoughts. To help us answer this listener's money question, we have credit cards nerd, Melissa Lamberina. Welcome back to the show, Melissa. Thank you for having me. Before we get started, just a note that we're going to talk about some credit cards in this episode. So some may be NerdWallet partners, but that does not influence our opinions at all.
Also, the benefits, terms and fees mentioned were accurate at the time of posting, but things could change in the future. Some offers may have expired by the time you're listening, but for the latest details, follow the links in the episode description.
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