Unfortunately, leaving a credit product open but allowing it to become inactive or dormant is the same as being late or delinquent.  I know many of you may think this sound unreasonable, however it happens all the time to very good consumers.  I have seen this a lot with department store cards that are opened for shoppers to get an instant discount on their purchases, only to receive a credit card in the mail, not activate it or use it and then it becomes inactive.  This then drops their score and effects their credit worthiness for the future when they are applying for credit.

Christine’s Tip:

Don’t let your credit rating drop because you don’t use your credit products.  If you have a line of credit, please use it the odd time to keep it active.  Inactivity or dormancy for a long period of time on an open line of credit, may prompt your bank to close the facility and often times it may be harder to apply for it later because the qualifying requirements and rates have changed.

Remember, good financial planning doesn’t mean you just set things up and then forget about them – even though I know we all have better things to do.  Please just use the credit you have periodically.  Be careful when giving out your social security number and make sure you ask what it is being used for.  It is after all your credit, your number and your right to protect yourself.