To protect yourself, watch out for these potential consequences of an unused credit card.
We Dare You to Take Control of Your Debt
Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
These four financial pitfalls come withnotusing your credit card.
Well explain how to manage them.
If you pay it off, you have good reason to celebrate.
Then keep using your card.
Continuing to use your card is important if you rely on it to build your credit score.
For example, lets say you have two credit cards each with $1,000 credit limits.
You pay off one but still have a $300 balance on the other.
If you keep both cards open, your credit utilization rate would be 15%.
The higher the utilization, the more it negatively affects your credit score.
And if you do notice a credit limit decrease, here arefour ways to fix it.
Heard of These Credit Card Debt Tips?
But millions of Americans overlookthese easy tipsthat could help them manage credit card debt even more wisely.
Read moreto boost your credit knowledge and keep your credit score in check.
Credit card closures can make your credit score dip.
This is because you now have a lower overall credit limit, which leads to higher utilization.
Using the card for manageable monthly subscriptions can help with this as well.
Every week, I check in with my cards apps for recent transactions.
Recently, one of my cards showed two charges, for a gas station and fast-food restaurant.
Tiffany Wendeln Connors is deputy editor at The Penny Hoarder.
Rachel Christian, a senior writer at The Penny Hoarder, contributed.
