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How many credit cards do you have? Are you one of those people who only have 1 credit card and are very careful with what you use it on? Are you one of those people that have 4 or 5 and like to use it on whatever you purchase? Maybe you are the other type. That type is the person who has 4 or 5 cards but only uses 1. Is inactivity good for your credit? Have you ever wondered if you are doing the right thing by having 4 or 5 cards, but only using 1 of them? Let’s learn about inactivity, and if it is something that really does help you.
Inactivity: Is It Just a Myth?
Let’s address something before we get started. That issue is the fact that you have 4 or 5 credit cards and do not uses most of them. Why have those cards? The wrong thing to do is sign up for cards just because of things like 0% balance transfers, or because they are store credit cards. Signing up for a numerous amounts of credit cards hurt your credit score. It gives off the impression that you are unstable with your credit. So, you really should not put yourself in the position to have credit cards that are inactive. Especially with store credit cards. Those things are a lot of trouble, and the credit company does not look at those very fondly. Mainly because those stores will hand those things out to anyone who has a pulse.
When Can Inactivity Hurt Me?
Just because you stop using your card does not mean the payments will automatically disappear. That is when the trouble happens. Do not stop using your card and forget about the payments. Make sure you are all caught up before you stop using the card and forget you have it. Plus you are still given credit, and that is not something you want to take for granted. If you do not need much, then do not get much. That is a simple rule. So by applying for a lot and never using it you are doing yourself a disservice. You really do not want to put yourself in a position to have inactive credit cards. Don’t rush to cancel a lot of them rapidly either. That can have the same effect has applying for too many cards.
Credit: It Does Not Grow On Credit Trees
Credit is not a right, it is a privilege. Sorry that last sentence sounded so preachy, but it is true. Just because you can get it, does not mean you should. Save some credit for the rest of us! I applaud you for being frugal and not maxing out your 5 credit cards. That truly is the smart thing to do. But you do not need 5 cards anyways. Applying for credit cards just for the free “things” that may be attached is the wrong way to apply for cards. Because you are only using them for a certain time, then tossing them in the drawer. It can become a vicious cycle that can end with you in credit debt. That is not a road that any of us want to take a stroll down.
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