What will happen when I don't use certain credit cards often enough?

Question

I have quite few credit cards that I haven't used for a couple of years, some of them maybe longer than that, but creditors still send me new cards after old ones expired. My question is what will happen if I don't use these cards anymore, should I call them up to close thees accounts (will this hurt my credit score) or will creditors close my accounts automatically (will this hurt my credit score?)

Any suggestion that I should do that WILL NOT harm my credit score?

Answer 1

If you don't use them then eventually the creditors will close them.
They will show as being closed by creditor. That notation will not have a negative impact on your scores and shouldn't have much of an impact on any future credit you apply for.
If you have quite a few that show as being closed by the creditor it still won't impact your scores but it could make a future creditor a little more cautious in extending credit.

If they are closed either by the creditor or by you then you will probably see a drop in your scores since your overall utilization would be less.

You won't lose history on the account(s) that are closed until they stop reporting at 10 years or more after the account(s) are closed. When they stop reporting at that time then you will see a drop in your scores for losing history.

You might call the creditors and see if the cards are in their inactive files. If they are you might ask them to reactivate the cards. Then use them once every 6 months or so for something small that you would normally purchase ($10 in gas, a pair of socks, a hamburger, etc) then pay in full when you get the statement.

Doing that will keep the cards active, reporting and continuing to help keep your scores up.

edit++
I normally agree with many of Steveo posts but I don't agree with his last sentence saying your scores will go up after closing accounts.
The only times I've ever heard of anyone have a score boost from closing accounts is when they closed "major" credit cards that had extremely small credit limits ($300 or so). It seems FICO doesn't care much for small limits on major cards.

Answer 2

There are several schools of thought about whether to close or keep open unused credit card accounts. Closing accounts could impact your credit score. When you close an account, you lower the overall available credit limit which would made the debt percentage larger. However, if you don't carry balances on any of your credit cards, this really won't hurt your score.

Closing long term accounts might ding your score since when you close them, you close the history.

My personal recommendation is to keep the 2 oldest major credit cards that do not have annual fees. Only keep gas or store charge cards if you have some special purpose. Close all the rest. Close them in writing and request confirmation that the account has been closed -- sometimes closed accounts come back to haunt you.

Having a stock of unneeded credit cards that you have to secure and monitor is just asking for problems.

Answer 3

Check your credit report. Some of those cards may have already closed your account due to inaction. As long as you either pay off everything every month, or have a balance of less than 30% on the cards that you do use, you will suffer no penalty on your credit score. You might also find that your score goes up after you close those accounts.

Answer 4

Credit cards have become a necessity in society nowadays, you can't go anywhere without having to use one. That's why it's imperative to maintain a goodpurchases are charged to your account. Before applying for one, allow yourself to learn as much information as possible, including the policies pertaining to a particular usage.

Answer 5

Just hang on to them if it worries you so much.