Credicated is a website that offers a simple solution to this problem. By signing up for Credicated, you can choose to have the website charge your credit card a small fee (less than $1 a month) on a monthly, bi-annual, or annual basis. This will keep your credit card accounts active and prevent them from being closed due to inactivity. But Credicated offers more than just peace of mind – it can also help improve your credit score in several ways. Here are four benefits of using Credicated to keep your credit card accounts active and boost your credit score:
- Low balances on your credit cards. When you sign up for Credicated you can choose to have the website charge your credit card a small fee on a regular basis. This will create a low balance on your credit card, which is good for your credit score. Having a high credit utilization ratio (the amount of credit you use compared to the amount of credit available to you) can hurt your credit score, so keeping your balances low is important.
- Avoiding credit card account closures. As mentioned, if your credit card remains inactive for too long, the bank may close the account. This can have a negative impact on your credit score, and can also raise red flags with banks when they do a credit check. By using Credicated you can prevent your credit card accounts from being closed due to inactivity, which will help maintain and improve your credit score.
- Building a longer credit history. The length of your credit history is one of the factors that determines your credit score. The longer your credit history, the better. By keeping your credit card accounts active with Credicated you can continue to build a longer credit history, which will benefit your credit score.
- Consistent payment history. Your payment history is another important factor that determines your credit score. If you consistently make on-time payments on your credit card accounts, your credit score will improve. By using Credicated to keep your credit card accounts active and paying on time every month (read about autopay here), you can maintain a consistent payment history, which will benefit your credit score.
In conclusion, Credicated is a simple and effective solution for keeping your credit card accounts active and avoiding negative impacts on your credit score. By using Credicated, you can enjoy peace of mind, prevent credit card account closures, build a longer credit history, and maintain a consistent payment history. All of these benefits can help improve your credit score, and make it easier to get approved for credit when you need it.
