If you’re like me, you probably have a score of credit cards that were procured for a wide variety of (generally useful) reasons such as gift points, airline miles, one-time discounts, charitable contributions – you name it.
Now, you may not actually require these credit cards but they do serve a useful purpose and that’s got to do with your FICO credit score. About 30% of your FICO score depends on the amount of credit you use relative to the amount of total credit you have.
So its important to ensure that your credit card accounts are not closed by the issuers for inactivity. Due to the economic downturn, there has been a recent trend by credit card companies to close inactive accounts.
Here’s where domain names come in. If you are in the internet business, you probably own about 2 dozen domain names or maybe more.
I charge the domain name renewal fees to a different credit card each time a renewal comes up. This ensures that my credit cards get a minimal balance once or twice a year. So far, none of my credit cards have been canceled for a lack of activity.
Note: FICO scores are only useful if you need credit. If you really don’t care about or need credit, then disregard this post.