Credit cards are useful for everyday spending, large one-time purchases, balance transfers to take advantage of a lower interest rate and more. If you have one or more credit cards you rarely use, there likely won’t be a penalty fee or immediate ding to your credit score if it sits untouched. However, a card issuer may choose to deactivate an inactive account eventually, and, in such a case, your credit score could take a hit.
It might not seem dangerous to have a credit card but never use it, but it can hurt your credit score and cause problems if you’re not careful. What can happen if you don’t use your credit card for a while? Here are some ways to keep your old card from giving you trouble.
Your Credit Score Could Drop
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Credit scoring models like FICO look at the mix of credit you have, including installment loans like mortgages and car loans, along with revolving credit like credit cards. Having open credit cards you don’t use counts as revolving credit, which is generally seen as positive.
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If you close unused credit cards, you lower your total available credit. This can increase your credit utilization ratio – how much of your total credit you’re using. Experts recommend keeping your utilization below 30%. Higher ratios can hurt your credit score.
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One more thing that goes into your credit score is the length of your credit history. Longer open accounts also help. Closing unused cards lowers your average account age.
So keeping unused cards open currently helps your credit, even if you don’t use them. But you’ll still need to monitor them…
Neglect Can Lead to Unpleasant Surprises
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Credit card companies may lower the limits on cards that aren’t used for too long. This makes you use your cards more, which is bad for your scores.
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Unused open accounts can be targets for fraud. If you don’t monitor statements on inactive cards fraudulent charges could go unnoticed.
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Forgotten recurring charges like subscriptions can continue billing unused cards. Review statements regularly to avoid unexpected or unwanted charges.
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Credit card companies may close accounts for good if they aren’t used for a long time. This also has the negative credit impacts noted above.
While not using your credit cards won’t directly hurt your scores, failure to monitor unused accounts can lead to unpleasant surprises. It’s important to periodically check in on open cards you don’t use.
Tips to Keep Unused Cards Active
Here are some easy ways to keep your unused credit cards from being totally inactive:
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Make a small purchase every 6-12 months and pay it off promptly. Just a tank of gas or grocery store trip may suffice. This shows card activity.
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Set a monthly reminder to log in to unused card accounts. Quickly check statements for unfamiliar charges.
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Set up autopay for a small repeating charge like a streaming service. Just be sure to monitor statements.
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If the card has an annual fee you want to avoid, ask the issuer to product change it to a fee-free card.
Keeping tabs on open but unused credit cards takes minimal effort. In return, you avoid potential issues and keep your revolving credit and history length at optimal levels. A few moments of monitoring can prevent unpleasant surprises and preserve your excellent credit!
Your Credit Score May Drop
A cardholder’s credit score could go down in a few different ways if they don’t use their card or close their account.
A cardholder’s maximum credit limit is the combined credit limit of all rotating credit accounts. Balances held on all accounts added up and compared to the summed maximum credit of the same group of accounts is known as a credit utilization ratio. The cardholder’s maximum credit limit goes down by the credit limit of the closed account when the account is closed. This could make the credit utilization rate go up. This rate makes up 30% of your credit score.
For example, if someone has two credit cards, each with a $1,000 credit limit, the most they can borrow is $2,000. One card has a $500 balance, which adds up to a credit utilization rate of 25% ($500/$2,000). If the other card is deactivated, the maximum credit limit halves to $1,000. Then the cardholder’s credit utilization shoots up to 50% ($500/$1,000)—well above the recommended 30% maximum. Amounts owed (credit utilization) is the second-most important factor in determining credit scores after payment history.
What Happens If You Don’t Use Your Credit Card
Cardholders with unused credit cards often won’t pay attention to that card’s billing statements or notifications. This is usually fine when there’s no balance to pay off, but after a long period of inactivity, a card issuer may close a credit card account. The exact length of time varies among issuers. Contact your card issuer to find out when they will deactivate your account if it isn’t being used.
Card issuers are not required to give notice of a looming deactivation. They may give cardholders the opportunity to maintain an account before a strict deadline, but it isn’t required. One purchase using the card should be enough to keep the account alive.
For some, a closed account won’t mean much. But for those with low overall credit limits, a closed account could have a negative impact on credit scores.
It’s a good idea to maintain your oldest lines of credit as the length of your credit history makes up 15% of your credit score. A closed account won’t immediately impact the age of your credit because it remains on your credit report for a period of time, but those accounts won’t continue to age and will eventually fall off your credit report.
What happens if you don’t use your credit card?
FAQ
Is it okay to have a credit card and never use it?
It is generally okay to have a credit card and not use it, but it’s important to understand the potential consequences.
How long can a credit card sit without being used?
There’s no set amount of time for this – how long the card can remain inactive before it’s closed can differ by card and issuer. Your issuer may or may not notify you that they’re about to close your account. If they do notify you, this is an opportunity to use the card if you want to keep the account open.
What happens if a credit card is never used?
You won’t be charged for credit card inactivity. Credit card inactivity fees, also called dormancy fees, used to apply to inactive accounts. Mar 20, 2025.
What is your credit score if you have never used a credit card?
Instead, if you haven’t started using credit yet, you have no credit history and no credit score — also referred to as unscorable or credit invisible. Starting with no credit isn’t the same thing as bad credit. It just means the credit bureaus don’t yet have enough information to assign you a score.