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What to Do with Unused Credit Cards: Tips for Keeping Them Open.

John ShahidiVerified
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Summary：Learn how to keep unused credit cards open and maintain your credit score. Evaluate card benefits, check for fees, use the card occasionally, set up automatic payments, and monitor your credit score.

What to Do with Unused Credit Cards: Tips for Keeping Them Open

As a credit card expert, it is important to know what to do withunused credit cards. Many people make the mistake of closing their accounts, thinking it will improve theircredit score. However, this is not always the case. Closing a credit card account can actually harm your credit score in some situations. Here are some tips for keeping unused credit cards open:

Evaluate the Benefits of the Card

Before you decide to close an unused credit card account, it is important to evaluate thebenefitsof the card. Look at the rewards program, interest rate, and any other perks associated with the card. If the card offers valuable benefits, it may be worth keeping the account open.

Check for Annual Fees

Some credit cards come with annual fees. If you have an unused credit card with an annual fee, it may not be worth keeping the account open. Make sure you are aware of any fees associated with the card before deciding to keep it open.

Use the Card Occasionally

One way to keep an unused credit card account open is to use the card occasionally. Even small purchases can help keep the account active and in good standing. Just be sure to pay off the balance in full each month to avoid interest charges.

Set Up Automatic Payments

Setting upautomatic paymentscan help ensure that your unused credit card account stays in good standing. This can also help you avoid missing payments and damaging your credit score.

Monitor Your Credit Score

Monitoring your credit score can help you determine if closing an unused credit card account is the right decision. If your credit score is already low, closing an account may further harm your score. Conversely, if your credit score is high, closing an account may not have much of an impact.

In conclusion, keeping an unused credit card account open can be beneficial for your credit score, but it depends on your individual situation. Make sure you evaluate the benefits of the card, check for annual fees, use the card occasionally, set up automatic payments, and monitor your credit score before making a decision.

Tips for Applying for a Credit Card

When applying for a credit card, it is important to do your research and find a card that fits your needs. Look for a card with a low interest rate, no annual fee, and rewards programs that align with your spending habits. Additionally, make sure you have a solid credit history before applying, as this can increase your chances of being approved.

Ways to Save Money with a Credit Card

Credit cards can help you save money in a variety of ways. Look for cards with cashback or rewards programs that offer discounts on purchases you would make anyway, such as groceries or gas. Additionally, some cards offer introductory 0% APR periods, which can help you save money on interest charges.

Annual Fees and Risk Mitigation

Annual fees can be a downside of some credit cards, but they are not always avoidable. If you have a card with an annual fee, make sure the benefits and rewards outweigh the cost of the fee. Additionally, it is important to practice good risk mitigation habits, such as monitoring your account for fraud and setting up alerts for suspicious activity.

Recommended Credit Card Companies

There are many credit card companies on the market, but some stand out above the rest. Some recommended companies include Chase, Citi, and American Express. These companies offer a variety of cards with competitive rewards programs and benefits.

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