Building Good Credit
Don’t Keep Your Credit Cards on Ice
As part of the fallout from the financial crisis, many consumers have changed their credit habits for the better by paying down debt and limiting their credit purchases. While that is a good thing, some of them may be putting their credit score at risk. Credit cards that sit idle too long could be marked by your creditor as inactive, and, in some cases they may even close the account, neither of which is good for your credit score. An important measure of your credit standing is how well you maintain and manage your credit, so if you don’t use your card, you won’t be scored.
Instead of putting your card on ice you should incorporate it into your monthly spending with the intent of paying your balance in full. Use it for your normal, budgeted expenditures, such as groceries and gas, and then pay off the balance. That will help you build your credit score, and, if you use rewards or cash back card, it can save you money on your purchases.