Why Not Using a Credit Card Can Actually Lower Your Credit Score

Not using a credit card doesn't directly hurt your score, but inactivity can indirectly damage it over time

If you stop using a credit card entirely, your score won't drop the moment you put it away. Credit bureaus don't penalize you for having zero activity. What actually happens is more subtle: an unused card can hurt your score through two mechanisms that develop slowly. First, the card issuer may close the account after months of inactivity, which removes available credit from your profile and can lower your score. Second, if you keep the card open but dormant, you lose the chance to demonstrate that you use credit responsibly, which is how you build and maintain a strong score.

The damage isn't automatic or immediate. Many people stop using a card and see no score change for months. But over time—usually six months to a year—the effects start to show. Understanding why this happens helps you decide whether to keep a card active, close it, or use it differently.

Key Takeaways

• Credit card issuers often close accounts after six to twelve months of no activity, which shrinks your available credit and can lower your score by 10 to 50 points or more.
• Your credit mix—the variety of credit types you use—makes up 10 percent of your score, so closing a credit card removes one type of account and can hurt that category.
• The longer you don't use a card, the higher the risk the issuer closes it without warning, so periodic small purchases help keep accounts open.
• Closing a card yourself is often worse than keeping it open unused, because it immediately reduces your available credit and can drop your score more sharply.
• A card with no annual fee costs nothing to keep open, so the safest approach is to use it occasionally rather than close it or abandon it.

How credit card issuers handle inactive accounts

Card companies have no obligation to keep an account open if you never use it. After a period of inactivity—typically six to twelve months, though this varies by issuer—they may close the account on their own. When they do, they send you a notice, but the damage to your score happens regardless of whether you read it.

The reason issuers close inactive accounts is financial. A card sitting unused costs them money: they maintain the account, pay for fraud monitoring, and hold a line of credit open that you might use tomorrow. If you're not generating transaction fees or interest charges, you're a liability. Closing the account removes that cost from their books.

Some issuers are more aggressive than others. A premium rewards card with an annual fee is less likely to be closed for inactivity because you're paying for the privilege of having it. A basic card with no fee is more vulnerable. If you have multiple cards and only use one or two, the unused ones are at higher risk.

Why account closure affects your credit score

When an issuer closes your account, two things happen to your credit profile. The first is immediate: your available credit shrinks. If you had a $5,000 limit and the card gets closed, that $5,000 disappears from the total credit available to you. Your credit utilization ratio—the percentage of your available credit that you're actually using—goes up as a result, even if you haven't charged anything new.

Here's a concrete example: suppose you have three cards with $5,000 limits each, totaling $15,000 available credit. You carry a $3,000 balance across all three. Your utilization is 20 percent ($3,000 ÷ $15,000). If one card gets closed, your available credit drops to $10,000. That same $3,000 balance now represents 30 percent utilization. Credit scoring models penalize higher utilization, so your score drops—often by 10 to 50 points, depending on how much your utilization increased.

The second effect is longer-term. Your credit mix—the variety of account types you hold—makes up 10 percent of your score. Closing a credit card removes one type of account from your profile. If you only had two or three credit cards, losing one is more noticeable than if you had ten. The impact is smaller, but it's still there.

The difference between closing a card and leaving it unused

Many people think the safest move is to close a card they no longer want to use. In reality, closing it yourself usually hurts your score more than leaving it open and unused. When you close an account, you immediately lose that available credit, which raises your utilization ratio right away. When an issuer closes it, the damage is the same, but at least you weren't the one who triggered it.

The best option is to keep the card open and use it occasionally. A small purchase every few months—a coffee, a gas fill-up, something you'd buy anyway—keeps the account active in the issuer's eyes. You pay it off in full, you incur no interest, and the account stays open. This costs you nothing if the card has no annual fee, and it protects your score from the damage of account closure.

If the card has an annual fee and you're not using it, the math changes. You're paying money to keep an account open that doesn't benefit you. In that case, closing it may be the right call, even though it will temporarily lower your score. The fee would cost you more over time than the score damage would.

How long inactivity takes to damage your score

The timeline varies, but here's what typically happens. For the first three to six months of inactivity, most issuers take no action. Your score remains unchanged because the account is still open and your credit profile looks the same. During this window, you can use the card once and reset the clock.

Between six and twelve months, issuers begin reviewing inactive accounts. Some close them immediately; others send a warning letter first. If you receive a notice, it's a signal to use the card soon or accept that closure is coming. Once the account closes, your score may drop within the next billing cycle, when the closure is reported to the credit bureaus.

After twelve months, most accounts are either closed or flagged for closure. If yours is still open, you've likely got an issuer that's more lenient, but the risk remains. The longer you wait, the more likely closure becomes.

What to do if you want to keep a card but rarely use it

The simplest strategy is to set a calendar reminder every two to three months to use the card for something small. Charge a subscription you already pay for—a streaming service, a gym membership, a phone bill—and set up automatic payment from your bank account. The charge posts, you pay it off automatically, and the account stays active. You've done nothing extra, and your score stays protected.

If you prefer not to use the card at all, contact the issuer directly and ask about their inactivity policy. Some will agree to keep an account open even with zero activity if you ask. It's not may provide, but it's worth a call. Explain that you want to keep the account for emergencies or to maintain your credit mix, and ask what they need from you to prevent closure.

For cards with annual fees, the calculation is different. If the fee is $95 and you're not using the card, paying that fee just to keep your score stable doesn't make financial sense. Close the card, accept the temporary score dip, and move on. Your score will recover as you continue to use your other cards responsibly.

How this fits into your overall credit strategy

Not using a credit card is only a problem if it leads to account closure. If you have a card with no annual fee and you use it occasionally, there's no downside. You're building a longer credit history, maintaining a healthy credit mix, and keeping your available credit high—all things that support a strong score.

The real risk comes from abandoning cards entirely and letting them close. If you have five cards and only use one, the other four are vulnerable. A better approach is to keep all of them open and active, even if that means small, infrequent charges. The effort is minimal, and the score protection is real.

If you're trying to rebuild your credit, having multiple open accounts—especially if they're in good standing—works in your favor. Closing accounts works against you. So the decision to use or not use a card should factor in your broader credit goals, not just whether you need it for purchases right now.

Frequently Asked Questions

Will my score drop if my card issuer closes my account?

Yes, usually by 10 to 50 points or more, depending on how much your available credit shrinks and how high your utilization ratio becomes. The drop happens when the closure is reported to the credit bureaus, which typically occurs within one to two billing cycles after the account closes.

How often do I need to use a card to keep it open?

Most issuers won't close an account for inactivity if you use it at least once every six to twelve months. A single small purchase every few months is usually enough to keep the account active and prevent closure.

Is it better to close a card or leave it open unused?

Leaving it open unused is almost always better for your score. Closing it immediately reduces your available credit and raises your utilization ratio. If the card has no annual fee, there's no cost to keeping it open, so inactivity is preferable to closure.

Can I ask my card issuer not to close my account?

Yes. Call the issuer and explain that you want to keep the account open for credit history and credit mix purposes. Some issuers will agree to keep an account active even with zero usage if you ask directly. There's no harm in requesting it.

How long does it take for my score to recover after an account closure?

Recovery depends on your overall credit profile, but most people see improvement within three to six months as they continue to use other accounts responsibly. The closed account will remain on your credit report for up to ten years, but its impact on your score fades over time.