Inactive Credit Cards

            Do you have a wallet full of credit cards, yet continue to reach for the same one over and over again? There are reasons you might want to start using those other cards or strategically closing the ones you don’t plan to use again.

 Following are a few key things to remember:

1. Card issuers may close the card for inactivity after a period of time.
2. Card issuers do not have to reopen and provide another credit card when they close an account.
3.  A closed credit card can impact your credit score in several ways.
   1. Your credit utilization (your available credit) will be lowered, or more simply put, it lowers your total credit limit.
   2. It may impact your credit history, including the average age of your accounts;   this is especially important if you have had the account for a long time.
   3. If it is your only credit card and it is closed, it could have a negative impact on your credit score.

          Keeping a card for emergencies is a good idea; however, those cards need to be used periodically in order to avoid closure. Consider putting a small monthly recurring charge on it. This might be a cable streaming service, a household utility bill, or gym membership – something with a set monthly amount that is easy to put on auto-payment. Doing this will keep the card active and avoid closure by the card issuer.