Why Not Using Your Credit Card Can Actually Lower Your Score

Not using your credit card can hurt your score, but only if you stop using it entirely for a long time

Your credit score looks at whether you use credit responsibly — and that means actually using it. If you have a credit card but never charge anything on it, credit bureaus see an unused account. After months of inactivity, the card issuer may close the account on their own, which removes available credit from your profile and can drop your score. Even if they don't close it, an inactive card does nothing to show lenders you can handle credit.

The damage comes from two specific things: losing available credit (which makes your existing balances look larger by comparison) and losing the chance to demonstrate you pay on time. A card sitting in a drawer for a year sends no signal to the credit bureaus about your reliability. You need active accounts showing regular, on-time payments to build and maintain a strong score.

Key Takeaways

• Credit card issuers often close accounts that show no activity for 6 to 12 months, which removes credit available to you and can lower your score.
• Your credit mix — having different types of credit like cards and loans — makes up about 10 percent of your score, so closing cards can hurt that part.
• A small monthly charge that you pay off keeps the account active and shows lenders you use credit responsibly without carrying debt.
• Canceling a card yourself causes more damage than letting it sit unused, because you lose the available credit immediately.

How available credit affects your score

Credit bureaus track your credit utilization ratio — the percentage of your total available credit that you are actually using. If you have three cards with $5,000 limits each ($15,000 total available) and you carry a $3,000 balance, your utilization is 20 percent. That is good. But if one of those cards closes because you never used it, your available credit drops to $10,000, and suddenly that same $3,000 balance looks like 30 percent utilization. Your score drops even though you did not charge anything new.

Lenders see high utilization as a sign you are stretched thin financially. The lower your utilization, the better your score looks. Keeping unused cards open preserves that available credit and keeps your utilization ratio low, which protects your score.

When card issuers close inactive accounts

Most card companies will close an account after 6 to 12 months of no activity, though the exact timeline varies by issuer. Some are more aggressive; others are lenient. You typically get a notice before they close it, but not always. Once closed, the account still appears on your credit report, but it no longer counts as available credit.

A closed account also stops building your payment history. Even though the account remains on your report for years, it is no longer active, so it does not help you demonstrate ongoing responsible use. New accounts matter less than old ones, so losing an older card that you have held for years is more damaging than losing a newer one.

The difference between inactive and closed accounts

An inactive account is one you own but do not use. A closed account is one the issuer or you have shut down. The damage is different. An inactive account that stays open still counts as available credit and still appears on your report, so the main risk is the issuer closing it on you. A closed account removes that credit from your available total immediately, which is why canceling a card yourself hurts more than simply not using it.

If an issuer closes your account, the damage is done — you cannot undo it. But if your account is still open and inactive, you can prevent closure by using it. Even a small charge every few months, paid off in full, is enough to keep most issuers from closing the account.

How to keep cards active without carrying a balance

The goal is to show activity without accumulating debt. Pick one small recurring charge — a streaming service, a gas station fill-up, or a coffee — and put it on the card each month. Pay the full balance when the bill arrives. This keeps the account active in the issuer's system, shows the credit bureaus you are using the card responsibly, and costs you nothing in interest.

Some people worry that using a card at all will tempt them to overspend. If that is your concern, use the card only for one specific thing you already pay for anyway, then set up automatic payment to clear the balance. You are not adding a new expense; you are just routing an existing one through the card.

What happens to your score if a card closes

The immediate hit usually ranges from 10 to 50 points, depending on how much available credit you lose and how long you have held the card. A newer card closing hurts less than an old one. A card with a high limit hurts more than one with a low limit, because you lose more available credit.

The damage is not permanent. The closed account stays on your report for about 10 years, but its impact on your score fades over time. After a few months of responsible use on your remaining cards, your score typically recovers. The longer the account was open and the better your payment history on it, the longer it may take to fully recover.

When you might want to close a card anyway

Closing a card hurts your score, but sometimes it makes sense. If the card has an annual fee and you are not using it, closing it saves money. If you are trying to reduce temptation to overspend, closing a card you do not need can be worth the score hit. If you have many cards and managing them is overwhelming, consolidating down to fewer cards is reasonable.

Before you close a card, check whether it has an annual fee. If it does not, keeping it open costs nothing and protects your score. If it does have a fee, weigh the cost of the fee against the score damage. A $95 annual fee might be worth paying to keep a card open if closing it would drop your score significantly, or it might not be — that depends on your situation and how much you value the score protection.

Frequently Asked Questions

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

Most issuers close accounts after 6 to 12 months of zero activity. Using the card even once every few months is usually enough to keep it active. Some issuers are stricter and may close accounts sooner; others are more lenient. If you are worried about a specific card, call the issuer and ask their inactivity policy.

Does paying off a card in full hurt my score?

No. Paying in full is ideal. Your score improves when you use credit and pay it back reliably. Carrying a balance does not help your score — it just costs you interest. Use the card and pay the full amount when the bill arrives.

If my card closes, can I reopen it?

Once an issuer closes an account, you cannot reopen it. You would have to apply for a new card from that issuer, which counts as a new account and will not have the age or history of the old one. It is better to keep the account open by using it occasionally than to let it close and try to recover later.

Should I close old cards to improve my score?

No. Older accounts help your score because they show a longer history of responsible credit use. Closing an old card removes that history from your active accounts and lowers your available credit. Keep old cards open, even if you do not use them much.

What if I have too many credit cards?

Having many cards is not inherently bad for your score — what matters is your utilization and payment history. If managing multiple cards is stressful or tempts you to overspend, closing some makes sense. Close the newest ones first, since older accounts help your score more. Keep at least one or two open to maintain available credit.