Use your Credit Card to Avoid Inactivity Fees
Posted on 2/22/2010 - Filed under Credit Card News
There have been recent reports about some credit card issuers charging customers for not using their credit card. While this is true in some cases, it doesn’t mean that it has to happen to you. Here’s what to do to make sure you cut down on inactivity fees and other charges.
Know how many cards you have. One of the easiest ways to get charged for not using your credit card is simply to forget about it. You may have one that you haven’t used in years sitting in your wallet or a drawer. Make sure you know how many you have and when the last time you used each one was.
Use each card at least once every three months. Try to use your card frequently enough so that you don’t forget about it. Also keep track of the amount that you spend, and get rid of any outstanding balances right away. This system will help you build credit and avoid charges at the same time.
Think twice before canceling. It might seem like if you don’t use a credit card, the right thing to do would be cancel the account. Part of your credit score, however, is based on the length of time that you’ve had credit. So keeping the cards could help keep your score strong.
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