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What If You Always Pay Cash?

05/15/24

A simple way to reduce debt is to stop using credit cards, but that could negatively impact your credit score. To stay “all cash” and maintain solid credit:

  • Don’t close credit card accounts. Closing the account reduces the credit available to you and impacts one of your important credit-scoring ratios. Even if you don’t plan to use the card, keep the account.
  • Occasionally use the account. Make a small purchase every other month and pay the bill on time. That will keep the account active. If you want, put a recurring purchase (like a cell phone bill) on your card so the charge will be automatic.
  • Pay your bills on time. Whenever you have a balance, pay the bill on time. On time payments is a major contributor to a good credit score.
Personal – Saving, Planning & Budgeting

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This article contains general information only. Sunflower Bank is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.