However, it is important to remember that having a credit card account that lies mainly dormant can actually be something of a risk, and could result in you being charged unnecessary fees by the credit card providers or even becoming a victim of credit card fraud.
Whilst some people think that having a credit card for emergencies only is a good idea, credit card companies tend to take a dim view of this. Why? Because they have to still deal with the administration of the account even though the customer is not really using the account. As a result of this some providers have started applying fees on accounts that are rarely or never used.
However, this is not the main problem for people that do not use their credit card accounts very often. The main risk is becoming the victim of credit card fraud, as many fraudsters target dormant credit card account, safe in the knowledge that the fraudulent activity probably won't be picked up for some time because of the fact that the account is rarely used.
Some people even think that if they cut up the credit card on a dormant account this will stop them from becoming victims of identity theft and credit card fraud. However, much of the fraud carried out using credit cards is CNP or Card Not Present fraud, where the fraudster does not need to actually have possession of your credit card in order to conduct fraudulent activity. You actually need to close the account altogether in order to stop the risk of becoming a victim of fraud.
Industry officials recommend that those with a credit card that is not used very often try to use the card at least once per month in order to keep it active. This can help to ensure that you are not charged for nothing by the credit card firm. However, more importantly it will ensure that you receive a statement from the credit card firm each month, which you can then check to ensure that no suspicious activity has been carried out using your card.
It's also important to know the level of credit card security your issuer offers you, from fraud guarantees to active fraud monitoring and even identity theft protection services.
It can also help to use free credit report services, such as Experian or Equifax. For a small monthly fee (usually less than £10) they will monitor your entire credit file and alert you to any changes such as newly opened accounts, closed accounts, address changes and more. These services can help to prevent credit card fraud and identity theft.