Whether your New Year’s resolution is to get rid of debt, or simply to de-clutter your wallet, deciding what to do with old credit cards could compromise your credit score, personal information and finances.
BBB recommends the following secure credit card management tips:
- Don’t just throw them away. With identity theft a common concern in today’s society, anyone could steal your credit card from the trash and use it, or its information, to make unauthorized purchases, drain your account or damage your credit score.
- Shred it and cut it. Just like with any personal information, shred all statements, reports and receipts that include your credit card information after seven years. Be sure to cut your unwanted credit cards multiple times to ensure it can’t be taped back together and still used online.
- If you’re keeping the card, make sure to use it. Some credit card issuers close cards without any activity, as they aren’t making a profit. This account closure lowers your credit report’s age and gets rid of the available credit that came with the card, which could hurt your credit score.
- Making small purchases is good. The best way to go is managing some credit activity on all of your cards, whether it’s making some small purchases or putting regular subscriptions on your older cards. Showing some credit activity every month is the best way to get the best credit score possible, along with paying the entire statement amount on time for all of your cards.
For more tips you can trust, visit bbb.org.
