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Waking up your credit cards from slumber in 2013

One myth we've covered numerous times on Creditnet is the idea that simply owning a credit card will help you improve credit. And while that's initially true, in order to accrue some real credit history you actually have to use your credit card. Plus, if you remain dormant for an excessive amount of time, your credit issuer may up and close your account altogether.

In the words of Stephanie Tanner, "How rude!"

Well, if you're serious about improving your credit score in 2013, or you're concerned your account could be closed since it's been collecting dust for months, the solution is simple - start swiping.

OK, we're not validating a holiday season shopping spree or anything like that, but designating a few purchases each month to be made via credit card is a good way to wake up those dormant credit accounts. 

Remember - the easiest way to build your credit is by making purchases and on-time credit card payments each month; these two simple practices account for 35% of your credit score! On the other hand, the closing of a credit card account could plummet your credit score.

So by keeping all your account active, you'll not only be avoiding a credit score meltdown, but you'll be improving your credit score and credit history over time. Keeping those accounts active in the new year is a win/win for your credit profile.

on Thu, 2012-12-13 11:42