Keep It, Don’t Swipe It: Harnessing Unused Credit Cards for a Better Credit Score

&NewLine;<figure class&equals;"wp-block-image size-large hts-content-image"><img src&equals;"https&colon;&sol;&sol;images&period;unsplash&period;com&sol;photo-1700779100830-745b49d4bb27" alt&equals;"Keep It&comma; Don’t Swipe It&colon; Harnessing Unused Credit Cards for a Better Credit Score"&sol;><&sol;figure>&NewLine;<h2>Understanding Credit Utilization<&sol;h2><p>When it comes to managing your credit score&comma; the credit utilization ratio plays a critical role&period; This ratio reflects the amount of credit you are using compared to your total available credit&period; By keeping unused credit cards open&comma; you can maintain a higher total credit limit&comma; thereby reducing your utilization ratio&period; A lower ratio is viewed favorably by creditors&comma; which can lead to an improved credit score&period;<&sol;p><h2>The Value of Longevity in Credit History<&sol;h2><p>Creditors appreciate a long credit history because it provides insight into your credit behavior over time&period; Unused credit cards contribute to your overall credit history length&period; They may not be actively used&comma; but having them on your reports keeps the average age of your accounts higher&period; This can positively impact your credit score&comma; demonstrating reliability and stability to potential lenders&period;<&sol;p><h2>Hidden Benefits of Keeping Unused Credit Cards<&sol;h2><p>Beyond the obvious benefits of credit utilization and history&comma; unused credit cards can also offer surprising additions to your financial strategy&period; Many credit cards come with perks such as cashback or travel rewards that can still benefit you even if you do not frequently use that card&period; Keeping these accounts active—whether by making small&comma; manageable purchases or simply paying the annual fee—can allow you to retain these benefits while promoting better credit health&period;<&sol;p><p>In conclusion&comma; keeping unused credit cards can serve as a strategic move to boost your credit score&period; By understanding the importance of credit utilization&comma; maintaining a long credit history&comma; and leveraging hidden benefits&comma; you can achieve greater financial health and improve your loan eligibility&period; So before you consider closing that unused credit card&comma; think about the potential benefits it may have for your credit future&period;<&sol;p>