Part of my debt free journey is learning about my credit score and keeping it at a steady rate. A lot has been learned through the process. I wanted to share with you, my reasons for “Ditching” the credit cards.
What I really mean is to hide the cards, lock them away and use them rarely or for small things you have the money to pay back. This allows you to maintain the credit that has already been developed. When looking at a credit score, a large part involves how long the credit line has been open.
*DO NOT cancel the card, that will decrease your credit score*
How to Ditch Credit Cards
Instead, hide it away in the old junk drawer you never go into. That way you can use the card for its intended use, emergencies! You will want to watch for fees from not using a credit card. Some companies may charge a dormant fee, so if you go too long without using it, there might be a fee to pay. To avoid this, put a small monthly bill on that card, one you can definitely pay off!
Personally, my Netflix account is to be billed to my credit card each month. This puts a balance on it, it’s not high, and it can be paid off in one easy click. Everyone is different so there are many options on how to do this. Charge a small grocery trip that will be paid off within the same month, or charge all Dr’s appointments or co-pays. The goal here is to pick one thing and stick to it, that way using the card on other things is less likely to happen.
Tips to Improving Your Credit Score
“soo, what if I have a balance on the credit card that will have to be paid off before I can build my credit”?
If struggling to pay off debt is an issue, check out the post on budgeting HERE.
By making on time payments you are still building your credit. A piece of advice that was discovered through this journey that has helped raise my credit score by 10 points in 6 months!! This was to pay the bill on the posted date, not on the due date. Paying on the posted date shows you are responsible, and you can pay the debt off which leads to an increase in a credit score.
Do you have advice on not using your credit cards, or even building your credit score? Please leave a comment about it below.