How to Keep Credit Cards Active with Small Monthly Charges

Credit cards, when used wisely, are invaluable financial tools. Not only do they offer convenience, but they also provide a mechanism to build a robust credit score, which is essential for favorable loan terms, renting apartments, and even in employment checks. However, one significant issue faced by many cardholders is credit card closure due to inactivity. In this blog post, we'll explore how to keep credit cards active using small monthly charges and the benefits that come with maintaining an active credit card.

Why It's Important to Keep Credit Cards Active

Inactive credit cards might seem harmless, but they can lead to account closure by the issuer, potentially damaging your credit score. When a credit card account is closed, it can impact your credit utilization ratio—one of the key factors credit bureaus consider when calculating your credit score. High credit utilization might suggest that you are overly reliant on credit, thus lowering your score.

Maintaining an active account through small monthly credit charges helps:

• Prevent Credit Card Closure: Regular usage tells the issuer you're actively managing your account.
• Improve Your Credit History: Constant activity reports demonstrate financially responsible behavior.
• Boost Your Credit Score: A low utilization ratio and a long history of responsible credit use can improve overall score.

Easy Ways to Keep Your Credit Cards Active

1. Set Up Automated Small Monthly Payments

Automating small monthly payments is an efficient strategy to ensure your credit cards remain active, helping to prevent closure due to inactivity. Consider subscribing to a streaming service or setting up a recurring online donation that you know will be charged monthly.

2. Utility Bills and Subscriptions

Link your credit card to utilities or subscription services you regularly use. This can include your gym membership, phone bills, or any small, consistent expense. This ensures monthly activity without additional spending.

3. Automate the Process with Credicated's Services

To simplify and streamline the process, consider using Credicated's Credit-Card Activity Service. This service is designed specifically to keep your credit cards active by performing small automatic micro-transactions like $0.99 monthly or $1.25 quarterly/yearly. The benefit lies in the consistency and reliability it provides without any manual effort from your side.

• Platinum Plan: Invest in the Platinum Plan for $0.99 a month, ensuring your card is used monthly without needing your intervention.
• Gold Plan: Opt for the Gold Plan to be charged $1.25 every three months, providing a simple solution for quarterly activity maintenance.
• Silver Plan: For those who prefer yearly transactions, the Silver Plan is a convenient option.

These plans automate your credit card use, ensuring they're regularly active and improve your credit profile.

Additional Benefits of Keeping Your Credit Cards Active

Aside from preventing account closure and protecting your credit score, actively using your credit cards has other advantages:

• Rewards and Cashback Offers: Often, credit card issuers provide incentives like cash back, points, or miles for usage. Keeping your card active ensures you're able to capitalize on these benefits.
• Emergency Availability: An active credit card ensures you have a financial safety net during unforeseen circumstances.
• Avoid Dormant Fees: Some accounts may charge fees if left inactive for too long. Regular use guards against unexpected charges.

Conclusion

Keeping your credit cards active through small, consistent charges is a clever way to protect your credit score and ensure that you're utilizing the financial benefits that come with a healthy credit history. Services like Credicated can automate this process, so you don't have to worry about manual oversight or extra planning—just pick the plan that suits your needs and enjoy the peace of mind that comes from knowing your financial foundations are being consistently maintained.

For more information on how to keep your credit cards active and to find a service plan that fits your lifestyle, visit Credicated today.

Implement these strategies to maintain your credit accounts actively and enjoy the financial tranquility that follows thoughtful management.