How many often do you need to “utilize” your idle credit cards?

I have probably 5-7 credit cards, 3 being major bank cares. All my cards are zero balances and idle for a few years. I found out it’s not good to keep them inactive or to close them out. Thinking keeping a zero balance would help my credit, could actually cause more harm. So I’m trying build my credit and was wondering how often should a credit card be used?

You have also missed another reason for using the cards – card companies are expected to start implementing a “non-activity” fee, meaning that if you do not use the card, they will charge you a small fee (say $10) for having the card. Obviously, for this fee, each bank will be different so keep tabs on any info you get from your card companies.

Next, you are correct that having idle cards does not help you build credit (although closing an idle account does hurt your credit). Your goal should be to use the cards on at least a quarterly basis for small items that you would normally pay cash for and pay off the balance when the bill comes in. This keeps the cards active and build up a payment history which builds your credit score. By paying off when the bill comes in, you avoid finance charges. Do not, however, pay before the bill comes in, as that will not help – the payment before the statement date will not show as a payment history and may even show as an inactive account (you begin the month with a zero balance and you end the month with a zero balance – looks like no activity).

Edit:

Whatever you do, do not close out the accounts – approximately 1/3 of your credit score is based on what is called available credit. Available credit is calculated by adding up the balances on all the cards and adding up the limits on all the cards – subtract the balances from the limits and that is the raw available credit – the higher this number (within reason), the better your score. The theory is that people with a high available credit ratio (available credit divided by the total credit limits) are better budgeters of their cash while maintaining an emergency spending reserve (the ability to use the cards if something catastrophic occurs). Since you would only be closing out a zero’d card, that would not lower the total balances but would lower the total limit, thus lowering your available credit and lowering your score. Given the weight the scores place on this number, closing out cards can really ding your score.

Credit Score Club