How to Keep a Credit Card Active Without Using It Regularly
Once a credit card has expired, it can no longer be used. But if you have an expired card sitting in your wallet, there's a simple way to keep it active even if you don't intend to use it. Proper maintenance of your credit card accounts and understanding the policies of your credit card providers can go a long way in keeping your cards active and in good standing.
Understanding Credit Card Expiration and Inactivity Policies
The first step in keeping an old expired credit card active is to understand the policies of your credit card provider. When you receive a new card in the mail after your current one has expired, it's a good sign that the provider still considers you a valuable customer. However, if you miss a few months of usage or fall behind on payments, your card may become inactive or even closed.
Some credit card providers require you to use your card at least once every year, while others may have a bi-annual requirement. Staying in line with these policies can help ensure your account remains active. If you fail to meet these requirements, you may receive a cancellation notice. In such cases, it's best to either use the card or switch to a card that meets the usage requirements to avoid losing access to the account entirely.
Maintaining Your Inactive Credit Card Accounts
If you have credit cards that you don't use regularly, it's a good idea to keep them active. One effective method is to use them for small purchases infrequently, such as once a month or once a quarter. Pay off the bill promptly after the purchase to maintain the card's activity.
For instance, I have several credit cards that I don't use regularly but like to keep active. Once every six months, I put each card in my pocket and head to a gas station when my car's tank is less than half full. I use each card to put in at least $1 of gas. Since all my cards are set up with autopay, I'm done for the next six months. This method has worked well for me, but I once missed one and received a cancellation notice. Since I didn't want to keep this card, I let it go.
A Proactive Approach to Keeping Credit Card Accounts Active Year-Round
A proactive and consistent approach can help ensure your credit card accounts remain active throughout the year. Each account may have different requirements, so it's important to check the specific requirements of each card provider. For example, one of my credit cards requires a use at least once every year. In January of each year, I use all my credit cards at least once for a small purchase. I then make sure to pay off the entire bill in full to ensure the account remains active.
By following this strategy, I can confirm by the end of January that all my credit card accounts are still active and will continue to be active until the following year in January. The key is to remember to do it consistently every year. Some people prefer to choose a month that holds special significance, such as their birth month, their spouse's birth month, or a royal family member's birth month. The important thing is to pick a month and stick to it. This method works well for me because January is the start of the new year, making it easier to remember.
Conclusion
Keeping a credit card active without using it regularly is possible if you follow the right strategies. Understanding and complying with the usage requirements set by your credit card provider is crucial. Regular small purchases, timely payments, and consistent annual checks can help keep your credit cards active and improve your overall financial health. So, if you have old credit cards, don't let them become inactive—take the steps to keep them active and secure.