Is Dust On Your Credit Card A Bad Thing?

May 19, 2012

in Tips

Is Dust On Your Credit Card A Bad Thing?

Some consumers routinely let their credit cards gather dust. They’re comfortable walking around with cash or they use debit cards, saving credit accounts for emergencies and the occasional plane ticket or hotel room. Their resolve is admirable, as allowing revolving balances to swell, often at much higher interest rates than on other loans, can strain household finances. High balances jeopardize the high credit ratings needed to secure attractive financing on life’s big demands, like a home purchase. But as anyone who’s ever tried to decode their credit report knows, all credit cards are not created equal. For starters, having a respectable amount of credit history is important. Accounts that carry modest balances and robust upside borrowing limits will earn favorable points. That’s because the consumer has not only proven their reputation for paying their bills, they’re viewed as having credit wiggle room in a financial pinch, which will help them keep up with their bills. But one of the first distinctions the consumer (and the lender, for that matter) should make is to determine if a credit account is active or inactive. Here’s where card-use frequency can really make a difference. [Read this article]

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