How to Handle Dormant Credit Cards

Having a high credit card limit is like hitting the credit lottery. The higher your available credit limit, the easier it will be to carry a balance, yet still raise your credit score. Most people are worried about the credit cards that they use, but you should also think about what to do when your cards are dormant. If you no longer use one of your credit cards, the card can become dormant. Here are some option that you have when it comes to dealing with dormant credit cards. 

Renegotiate the terms

One of the reasons why people stop using credit cards is because the terms are not good-natured to what they want. If you have been able to move to credit cards with lower interest rate and other rewards that interest you, you may have stopped using higher interest credit cards. If your credit score has increased, you have the option to renegotiate your terms. If you are able to get the interest down, this may bring back your interest in the credit card.

Wait for it to drop off

If you have a card that you do not use due to high-interest rates that you cannot get down, or simply because it does not offer you the rewards that you have on others, you can wait for it to drop off of your credit. Items that are on your credit for around seven years with no activity will drop off of your credit after some time. Rather than closing the card, you can leave it open and on your credit until it falls off by doing nothing. 

Add your spouse or children as an authorized user

Being able to help your spouse or your children raise their credit score is an excellent gift. If one of your family members is struggling with their credit score, add them to your dormant credit card as an authorized user. You can choose to keep the card in your possession so that no purchases take place. Having an account that is in good standing, plus has an available credit limit will help anyone’s credit score almost immediately. Everyone should be aware that this card needs to remain unused in order for it to maximize everyone’s credit rating. 

Make it the in case of emergency card

It is always a good idea to have a card with an available credit limit in case of emergencies. This can mean anything from a car breaking down and needing a tow or having to pay for emergency surgery. Anything can happen in life, so having a card that is ready and waiting with an available credit limit can set your mind at ease. In order to make sure that the card stays open, make a small purchase on the card regularly. For instance, you can use this card to pay for one fast food meal every few months or to pay hotel incidental charges when you are traveling. This will make sure that the credit card is around when you need it.  

 

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