Risk of Unused Credit Card Account Being Closed - Tips to Keep Account Open

You have wisely cut back on your spending. Sticking to a budget will better ensure that you don't become overextended. So now, you have one or more credit card accounts open that you are no longer using. You are looking upon those unused credit cards as ones that you can start using in the future when your economic situation picks ups. Or you may be holding on to the unused cards as sources for money should your financial situation become bleak. Did you know, though, that an unused credit card account may be closed by the lender or department store that issued it? Here are steps to avoid losing those valuable credit cards.

Start With a Free Credit Report

Go to the Federal Trade Commission's website for a free copy of your credit report. This website, which has helpful information and instructions, was set up to help individuals get a copy of their credit report at no charge. You are offered the option to get your credit report online, by phone, or by mail. If you choose to get your report online, after clicking the link to AnnualCreditReport.com, you should select the state where you live, and then click the Request Report button. After filling out the requested information, you will be prompted to select one or all of the three credit agencies to receive a free report. What you could do is choose just one agency now, then return in four months and choose a different agency, thereby spacing out your reports over the year to keep on top of your credit. Whichever agency you select, you will be directed to that agency's website where you will need to complete a brief questionnaire to identify yourself. Remember, you do not need to buy anything.

Review your credit report, looking to see which cards are open that you are not currently using. Any cards that you are not using should be used periodically to help ensure that the bank or department store does not close your card or lower your credit limit for non-use, which could result in a lower credit score for you. Make a small purchase on unused credit cards, like buy gas for your car or a pair of socks just to use the card.