I’ve heard numerous stories from people about how credit card companies are closing inactive cards. I personally have several cards I haven’t used in quite some time because their cash back offerings haven’t been competitive. On some of those cards, I consolidated the credit lines into other cards from that issuers. But for many, they simply sit in my closet collecting dust. I don’t close them because having a longer history, as calculated by the average age of your credit cards, helps your score. Also, having a large available balance means the utilization percentage is lower, which is also a plus. Finally, you never know.

Well it’s that “you never know” part that scares credit card companies. They don’t like having large outstanding credit lines out there, especially if they aren’t being used. If you haven’t used a card in a year, what’ll make you start using it again? Maybe you’re in trouble, maybe you suddenly need money, both cases scare credit card companies. So they started closing those accounts.

If you want to avoid this happening to use, start using your old cards again just so they don’t come up as inactive.

Building and maintaining a strong credit history is a must these days. In the past, only lenders cared about your credit score and your credit history. Now, everyone from landlords to employers are checking your credit history and using it as a proxy for reliability and trustworthiness. They believe that someone with a low credit score and a weak history is less trustworthy, which may or may not be true, so it’s important for you to build and maintain a strong credit score and history. This is best accomplished when you’re a student because you’re finally on your own.

The first step is to try to apply for a student credit card such as the Citi mtvU credit card. The Citi mtvU card isn’t just the non-student card with higher interest rates and more fees, it’s actually a tailored card with features a student would like like 5% cashback at bookstores, points for good grades and on-time payment. It also means that students are more likely to be accepted. If you try to get a regular consumer credit card, the rules are going to be more stringent.

If you don’t qualify for that card, consider getting a credit card from a store you shop at in the mall. These cards often have low limits and zero benefits (make sure you get a card with no annual fee!) but you’re looking to build credit, not get access to easy debt. If you can get the mtvU card, or some other student card, don’t bother with getting a store card.

Don’t sign up for a credit card at some random table at school. 95% of these tables are legitimate, but you always run the risk of giving out all that sensitive data to a complete stranger that you shouldn’t trust. That person could use that information to steal your identity. Not worth it.

Good luck!

Do you have one too many credit cards in your wallet or purse? Are there cards hidden away in your desk drawer never to be used again? Have you considered closing them entirely? Rather than close them, try to consolidate multiple cards into one card and preserve your total credit limit.

Your percent utilization, which is how much of your total credit you currently are using, is a component of your credit score. If you close a credit card, you reduce your total credit and increase your percent utilization – thus decreasing your credit score. While closing off cards may be good for other reasons, you can achieve those same goals by calling your issuer and asking them to consolidate your unwanted cards’ credit limits into the wanted cards.

Saves space, makes your credit more secure, gets rid of unnecessary credit cards and preserves your credit score.