If you have a lot of credit cards, or even just some you use more than others, it’s easy to forget about certain cards. They then end up collecting dust for years. And although you may have no trouble using other cards or cash instead, it’s very important to take those old cards for a swipe every once and awhile.
For one, you’ll have to pay annual fees for cards you don’t even use. Plus, some credit cards also charge inactivity fees simply for not using your card. In addition, inactivity can actually hurt your credit score. A part of your credit score is based on your payment history. So, it’s important to actually use your cards to show that you are financially responsible. If you do not use your cards, your credit card issuer may eventually decide to close your account. This can do a lot of damage, because it can affect your credit utilization ratio. This is how much credit you use compared to how much credit is available to you. The lower, the better. But with a closed account, you’ll lose a lot of the credit available to you. In turn, your utilization will get higher, and your credit score will drop.
So, make sure to use your old cards every now and then. Simply using them once will do much better for your credit than letting them collect dust!
