Be Sure to Utilize Those Credit Cards from Time to Time

If you just paid off a large credit card debt, it can be tempting to put that credit card on ice, literally. Some people actually freeze their cards hoping in the time it takes for the card to thaw out, the temptation to spend will pass. However, is it really good for your credit to avoid using your card all together?

Basically the answer is no. If a cardholder has no balance and makes no new purchases for the card company to earn interest on, then eventually the card company will close the account for inactivity. Closing a credit account always has a negative effect on a credit score, as it lowers your amount of available credit.

The simple answer is to use your credit cards from time to time to keep them active. Also, be sure to pay the balance before the interest comes due. Putting your credit card on ice might be a good solution for compulsive shoppers, but for other consumers it might cost you your credit card account.


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