Those who have good credit often receive a variety of credit cards in the mail, which are already approved and ready to be used. Companies send these out to customers who they know are a very low credit risk, in the hope that they will start using them. The cards can be activated after receiving them, which allows them to then be used by the consumer, up to the pre-set credit limit that comes with the card, as long as the cardholder has agreed to the contract, verified their identity and set up their pin number with the credit card company.

The question is, however, should consumers activate new cards which they receive in the mail. Many people do activate nearly every card that they receive, and there are advantages and disadvantages on both sides. While it can be useful to have several different options when it comes to credit, and a large amount of available credit, the disadvantage is that it can be tempting to have that much credit available, and some consumers will see it as an excuse to spend, which can turn into a problem very quickly when the bill comes due and the minimum payments are totaling up.

There are, however, some advantages to opening credit cards when they are received in this way. For one thing, the amount of available credit that the card holder has, as opposed to how much they have actually used affects their credit score. Consumers may notice a change in their credit score when they have a great deal of credit available to them, but don’t actually owe very much money. However, this can turn on someone who isn’t familiar with how the credit scoring system works. Too much available credit and no spending can bring a credit score down.

Other advantages to having credit cards open is that the consumer will have several options available in an emergency, with the possibility of having some very low interest credit available. Also, borrowers can choose the best card for a purchase depending upon the terms, or how the rewards points are applied. There are several advantages to activating new credit cards than there are just throwing them away, but consumers should be careful not to change their spending habits if they open any new accounts. If they begin to notice themselves overspending, it may be more prudent to close some of them rather than rack up enormous debt.

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