What is Credit Card Active?
I built Credit Card Active to make it easy to keep unused “drawer” credit cards open. I do that by charging a small recurring fee to each of the credit cards.
Just choose the membership renewal interval you desire through the link below, and you’ll be all set.
What is Credit Card Active? – LONG FORM EXPLANATION
I am a perennial credit card rewards and bonus chaser. I own a stack of cards an inch thick. Of course I’m only using a select set of those at any one time based on whatever the rewards and bonuses are for my credit cards in that moment. Thus, a large number of my credit cards end up in drawer for months and years at a time. They are not actively used. This creates a problem.
I regularly get threatening letters from credit card providers informing me that if I want to keep my account open, then the credit card must be used periodically. It must be active to stay open. Then, I have to use the card within 30 days of the date of the letter in order to keep the account open. Credit Card Active is the solve for that problem.
I sell “memberships” for each of the credit cards you would like to keep open, and I charge each credit card a nominal amount either monthly, quarterly or annually. You can choose whatever interval best suits your needs.
What do I get with my membership?
Right now the membership is buying you peace of mind that your credit card(s) won’t get cancelled due to non-use. In the future I may expand features based on desires of the membership base.
Why should I care if a credit card provider cancels my card?
The length of your credit history effects your credit score. “Length of credit history counts for 15%, with longer credit histories being considered less risky, as there is more data to determine payment history.” If you have old credit cards that then get canceled, you lose this history – potentially causing a meaningful drop in your credit score. When one of my university-affiliated credit cards was canceled, I lost several years of credit history . I just didn’t know better. My credit score suffered. Not fun. So, it makes sense to keep every credit card open, esp. if its one you’ve had for years.
Your utilization rate effects your credit score. “Total amount owed counts for 30% [of your credit score] and takes into account the percentage of credit available to a person that is currently being used.” The more credit you have available, the lower that utilization rate is. So, you don’t want to let the credit card providers cancel your credit card and its associated credit limit because that unused credit is working for your benefit. If the credit card gets canceled, that will push up your utilization rate and drag down your credit score. For example, if you have $100k in credit available and a total balance of $10k, your utilization rate is 10%. If you let a credit card with a $20k limit get canceled, you then only have $80k of available credit and your utilization rate on the same $10k balance is 12.5%. Thus, it makes sense to keep every credit card open, especially if its one with a higher limit.
Rewards. If you have any of them still sitting in the account, and the credit card provider abruptly cancels your credit card, then you lose them. As a rewards chaser, that would be particularly painful.
Why don’t I just go buy something with the credit cards rather than pay you?
Some businesses do set a minimum level of spend (often $5-$10) in order to use a credit card. This is a violation of the terms of the credit card processors, but it does happen. I believe this reflects the underlying disdain that many business owners hold towards credit cards and the fees they have to pay. It effects their bottom line. So, I feel kind of bad asking them to run something small and still have to pay the set fee.
Plus, I have to drag the credit card out of the drawer, stick it in my wallet, and remember to use it when I’d rather use a different card to keep maximizing my rewards.
Finally, Credit Card Active is a one stop shop for all the credit cards you want to keep open so it consolidates that goal on a single site.
Is this a scam?
No! I have absolutely no interest in stealing your credit card information. I use Stripe for processing so I can’t even see any credit card information except the last 4 digits of your credit card and the expiration. This also makes direct cancellation here or in Stripe easy.
Why is your pricing so low/high?
I made Credit Card Active for me, and I’m pretty cheap. The fees that Stripe charges account for up to 33% of the membership price depending on the plan you choose. I also pay for hosting and associated costs out of whatever is left. So, you’re welcome 🙂
Have you ever increased prices?
No. If my website maintenance costs or Stripe fees increase, then I might, but I have no plans for this. Likewise if the customer demand for the service exceeds my expectations, I might lower the price.
Can I write off my membership on my taxes?
Maybe. I’m not a tax expert, but it’s plausible that if you have those credit cards exclusively for business purposes, then it’s a business expense.