Why should you hang on to a credit card that you don't use very often? MoneyTips will give you two very good reasons: it serves a suitable source of emergency credit if needed, and it raises your credit score by keeping your credit utilization low.
Your credit utilization is the total amount of your credit in use to your overall available credit (the sum of all your credit limits). As you get closer to using all of your available credit, lenders and credit-scoring systems consider you to be at higher risk for non-payment and eventual default — and as a result, your credit score will drop.
Unfortunately, the potential consequences of not using your credit card can be worse than that. If you don't make charges on the card periodically and carry no balance, the credit card issuer may think that you no longer plan to use the card and can declare the card inactive, c...
from MoneyTips https://www.moneytips.com/do-not-let-anyone-cancel-your-credit-card
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