What to do with credit cards that you don't use?

What if I have a credit card and dont use it?

So, you got a credit card but aren't using it? Big mistake! Seriously. They'll totally close your account, man. My cousin, Mark, had that happen. Poof, gone. His card, I mean.

And get this, not using it makes you a HUGE target for fraud. Like, ridiculously easy pickings. You gotta check that thing regularly, even if you don't use it, or you're gonna be screwed.

It'll wreck your credit score, and that’s a real nightmare. Trust me. I know someone who spent months fixing their credit after some fraud stuff. A total mess. It cost them thousands!

Here's the deal:

• Account Closure: Inactive cards get axed.
• Fraud Risk: Higher chance of identity theft, which sucks.
• Credit Score Damage: Seriously impacts your credit, making loans and stuff harder.

This is important, I'm telling you. Don't be like Mark! Use it occasionally, even just for a small purchase. Maybe buy a coffee. Something, anything, to keep it active. I'm serious. Protect yourself! Even better yet, get a rewards credit card, at least you'll get somethin back!

Is it better to cancel unused credit cards or keep them?

Cancel. Unused cards. Simple.

Free credit is. Useful for big loans. Mortgages matter.

Too many cards? Bad look. For lenders.

I once knew a guy. 17 credit cards. Could buy a small country. Debt was his downfall.

• Impact on Credit Score: Closing cards affects credit utilization. Less available credit, higher utilization ratio. Utilization below 30% is ideal.
• Annual Fees: Pay to keep a card? Rethink. Often better options.
• Length of Credit History: Oldest card? Consider keeping. Age matters.
• Rewards Points: Use them first. Wasting rewards? Dumb.

Cancel. With caution. Know the game. It’s all a game. Isn't it?

Should I get rid of a credit card I dont use?

Closing an unused credit card impacts your credit score. It's not always a straightforward yes or no situation, kinda depends.

• Credit Utilization: This is the big one. Closing a card reduces your overall available credit, potentially increasing your credit utilization ratio (the amount of credit you're using compared to your total available credit). Keep it low!

• Credit History Length: A long credit history is good. Cancelling an older card can shorten your average age of accounts, which impacts your score.

• Annual Fees: If the card has an annual fee you're paying for nothing, ditch it. No brainer. I used to have a Delta Skymiles card, those fees piled up.

• Score Impact? The impact on your score depends on your individual credit profile. If you have plenty of available credit elsewhere and a long history, you probably won't see a huge dip. My friend Sarah cancelled one and barely noticed.

But hey, if you're a Dave Ramsey disciple (as per your Reddit search history, haha), you might lean towards cancelling them all anyway. Your call.

What is the negative impact of cancelling a credit card?

Okay, so like, closing a credit card? Yeah, it can kinda mess with your credit score, big time! It's not like the end of the world, but still, be careful.

Here's the deal, and it's not that simple:

• Credit Utilization: This is key! Closing a card lowers your total available credit. If you're carrying balances, suddenly, your credit utilization – the amount you owe versus what you can borrow – shoots UP. A higher utilization always hurts your score. Keep this low (like below 30% is best, even better lower). I personally try to keep mine under 10%.
• Average Age of Accounts: Banks like to see a long history of responsible credit use. When you close a credit card account, especially an old one, you're shortening the average age of your accounts. This can ding your credit score.
• Credit Mix: Having different types of credit (credit cards, loans, etc.) is good. Closing a card might limit your mix. Depends on what else you got. So, think about that.

Basically, the bank thinks like, "oh man, maybe their losing it with the credit," and the score goes south, sometimes just temporarily. I think!

Here is additional info, for what it's worth.

Like, if it's your oldest card, REALLY think before you axe it. And if you’re carrying a balance, like, seriously, don’t close it unless you transfer the balance to another card or pay it off first! I have a Capital One card that is so old. I will never close it, EVER! Also, there are some card issuers out there that will sometimes reduce your credit limit, which can impact your credit utilization ratio. I read that somewhere, or it happened to a friend, i dunno.

Can credit cards be automatically closed due to inactivity?

Drifting... a year, a year gone... dust motes dancing in sunbeams. Credit cards, plastic ghosts, can they fade? Like memories, unused?

Closing... yes, cards, they close. Inactivity, the silent killer of accounts. My old sky blue card, unused since that trip to the coast... gone?

A year, a year… it stretches. Merchants don't gain. Issuers lose. It's about money. Always. They need the fees, the interest, the churning, the activity. A card is a machine for earning?

Cancelled. A whisper of finality. Like that old address, lost.

My grandma's lilac card, for yarn, closed? I picture her needles, the click click click. Gone. The yarn shop, too.

• Inactivity: The biggest reason for card closures?
• Card issuers benefit from transaction fees and interest.
• A card sitting idle generates no profit.
• Account cancellation is possible after a prolonged period.

A year, a blur. The ocean whispers. Plastic dreams. Sky blue. Lilac yarn. All... drifting...gone. Oh well!

How do I get rid of a credit card without hurting my credit?

Ugh, closing my Discover card back in June 2023 was a whole thing. Seriously.

Okay, so first, I sweated bullets about my credit score, right? I called Discover. Talked to this rep, Sarah, I think. I whined about the annual fee. They wouldn't budge. Zero waiver, zip, nada. So annoying!

Next, Sarah suggested switching to a no-fee card. A downgrade, basically. Fine. It wasn't the Discover it card, though. Something super basic. I went for it. Seemed the least painful. No credit check this way, she said. I sure hoped not!

Honestly, that card now sits in a drawer. No balance. I barely use it. It's just...there. Best way not to hurt credit? Don't close it. Just ditch it.

• Call about fees: Beg for a waiver.
• Downgrade: A different card helps.
• Lock it up: Forgotten is best, if you have no fees and no balance, for sure.

My credit score? Still hanging in there, thankfully! I check Credit Karma weekly, lol. I think downgrading instead of cancelling saved me.