The Pros and Cons of Buying an RV in Retirement
Ryan Ermey: Whether you're fantasizing about getting away for a couple of weeks or dreaming of a retirement on the road, an RV is seeming like a more and more viable option these days. RV Dealer Association president Phil Ingrassia joins the show for a discussion of the benefits, drawbacks, and costs of RVs in our main segment.
- Episode Length: 00:33:16
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Ryan Ermey: On today's show, Sandy and I tell a listener what to do after an issue that cut her credit limit in half and interest rates -- and the Fyre Festival feature in a new edition of Deal or No Deal. That's all ahead on this episode of Your Money's Worth. Stick around.
Ryan Ermey: Welcome to Your Money's Worth. I'm Kiplinger's associate editor Ryan Ermey joined as always by senior editor Sandy Block. And Sandy, we are recording today, I'm in a familiar situation, which is that a friend has texted me and said, “You write for that financial magazine, don't you have answer for some question I have?” And so the listener in question had her credit card limits slashed in half and was pretty livid about it. She says she puts at least $200 on the card monthly and pays it off in full. And she feels like she's somehow being punished for being financially responsible. She's trying to buy a house and is worried that her credit score may be dinged as a result of this, as well.
Ryan Ermey: This is one that I reached out for some help for. I guess the number one thing, Sandy, is the reason that she's concerned about her credit score is this idea of utilization ratio, right?
Sandy Block: Right. If she's in the market for a house, one of the things that lenders will look at is the amount of overall... the ratio of the amount that she's borrowing versus the overall credit that she has access to. So if her credit limit has been cut in half, that's going to hurt her ratio, even though she didn't do anything wrong.
Sandy Block: I think this always comes as a shock to people that credit card issuers do this, but I remember this happening a lot during the Great Recession and it's happening now. It's not because of anything she did, it's because of the economy. It's because lenders are much more risk averse now. They're worried that people are going to lose their jobs and max out on their credit. And we were always shocked when this happens -- especially if, as was the case with this listener, they've done everything right. It's like you're being punished for nothing. The only thing I can say is, you're not alone.
: Right. And so, as you say, Sandy, credit card issuers are doing this now in the same way they did during the Great Recession, just because they're trying to reduce their exposure a little bit. Little used cards are a common target for these kind of cuts because they represent some kind of
