How Not Using Your Credit Card Affects Your Credit Score

Not using a credit card does not hurt your score, but leaving it completely inactive can cause problems over time

Your credit score will not drop simply because you stop using a card. The act of not spending on a card does not trigger any penalty. However, credit card companies can close inactive accounts after months of no activity — typically six to twelve months, though this varies by issuer — and a closed account can affect your score in ways you might not expect.

The real risk is not inactivity itself, but what happens as a result of it. When a card sits unused long enough, the issuer may close it. That closure removes available credit from your overall credit limit, which can raise your credit utilization ratio (the percentage of your total credit limit you are actually using). A higher utilization ratio can lower your score, even if you have not missed a payment or changed your spending elsewhere.

Key Takeaways

• Not using a credit card will not lower your score directly, but the card issuer may close it after six to twelve months of inactivity.
• When a card closes, your available credit shrinks, which can raise your credit utilization ratio and lower your score.
• A small purchase every few months — even a dollar or two — keeps the account active and prevents closure.
• Closing a card yourself has the same effect on your utilization ratio as the issuer closing it, so inactivity is often the better choice.
• Older accounts help your credit score, so keeping an inactive card open is usually better than closing it.

Why card issuers close inactive accounts

Credit card companies close accounts that show no activity because inactive accounts cost them money to maintain and carry risk they cannot measure. An account with no recent transactions gives the issuer no current information about whether you can still pay, whether your circumstances have changed, or whether the card has been lost or stolen. From their perspective, an inactive account is a liability.

The timeframe varies by card issuer and card type. Some cards close after six months of no activity; others wait twelve months or longer. Premium cards (those with annual fees) may close faster because the issuer is losing money on the annual fee without any offsetting transaction revenue. You can usually find the specific policy in your cardholder agreement, though many issuers do not publish an exact timeline.

Once a card is closed, you cannot use it, and the issuer reports the closure to the credit bureaus. The account will still appear on your credit report, but it will be marked as closed.

How a closed account changes your credit utilization ratio

Your credit utilization ratio is one of the largest factors in your credit score — typically accounting for about 30 percent of the calculation. It measures how much of your available credit you are actually using. If you have a total credit limit of $10,000 across all your cards and you are carrying a $2,000 balance, your utilization ratio is 20 percent.

When a card closes, that card's credit limit disappears from your available credit total. If the closed card had a $5,000 limit and you were not using it, your available credit drops from $10,000 to $5,000. If you still have a $2,000 balance on your other cards, your utilization ratio jumps from 20 percent to 40 percent. That increase can lower your score, even though you have not spent any more money or missed any payments.

This effect is temporary. As you pay down balances on your remaining cards, your utilization ratio will improve again. However, if you are carrying balances across multiple cards, a closed account can create a noticeable dip in your score that lasts weeks or months.

How to keep a card active without using it regularly

The simplest way to prevent closure is to make a small purchase on the card every few months. This does not have to be expensive or frequent. A single transaction — even a $1 or $2 purchase — counts as activity and signals to the issuer that the account is in use. Many people set up a small recurring charge, like a streaming service or a monthly subscription, and pay it off immediately.

The purchase itself does not need to stay on the card. You can charge something small and pay the full balance right away. The issuer is looking for evidence that the account is active, not that you are carrying a balance. In fact, paying off the full balance every month is the healthiest pattern for your credit score.

Another option is to use the card for a single planned purchase every quarter or so — buying gas, groceries, or something you were going to buy anyway — and then paying it off. This keeps the account active without requiring you to change your spending habits or set up new subscriptions.

Closing a card yourself versus letting it close

If you decide you no longer want a card, you might assume it is better to close it yourself rather than let it sit unused. In terms of your credit utilization ratio, closing it yourself has the same effect as the issuer closing it: your available credit shrinks, and your utilization ratio may rise. The difference is timing and control.

When you close a card, the effect is immediate. When an issuer closes a card due to inactivity, you may not notice until you try to use it or check your credit report. From a credit score perspective, both outcomes are similar. However, keeping an old card open — even unused — helps your score in another way: it increases your average account age. Older accounts are weighted more heavily in credit scoring, so closing an old card removes that benefit.

If you have a card with an annual fee and you are not using it, closing it makes sense because you are saving money. If the card has no annual fee, keeping it open and inactive is usually the better choice for your credit score.

What happens to your credit report when a card closes

A closed account remains on your credit report for seven to ten years, depending on whether it was closed in good standing (no missed payments) or closed with a negative mark. During that time, the account still counts toward your credit history, though it no longer contributes to your available credit.

The account will show as "closed" or "closed by issuer" on your report. This does not hurt your score — a closed account in good standing is not a negative mark. However, it does mean that account no longer helps offset your utilization ratio if you are carrying balances elsewhere.

You can check whether any of your cards have been closed by pulling your credit report from Equifax, Experian, or TransUnion. You are may have access to to one free report per year from each bureau at AnnualCreditReport.com, which is the official government site for this purpose.

When inactivity is actually the right choice

There are situations where letting a card sit unused is better than closing it or using it regularly. If you have paid off a card and you want to keep your utilization ratio low, leaving the card open and unused preserves your available credit. If you have an older card that has been part of your credit history for years, keeping it open maintains your average account age.

Inactivity is also the right choice if you are trying to avoid temptation to spend. If you have paid off a card and you are worried you might use it again, leaving it at home or in a drawer — without closing it — lets you keep the credit-building benefits without the risk of running up a new balance.

The only real downside to inactivity is the risk that the issuer will close the account. If you check your account every few months and make a small purchase once or twice a year, you can avoid that risk while still keeping the card open.

Frequently Asked Questions

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

Most issuers close accounts after six to twelve months of no activity, though some wait longer. Making one small purchase every three to six months is usually enough to keep an account active. The exact policy depends on your card issuer, so check your cardholder agreement if you want to know the specific timeline.

Will my credit score go down if my card gets closed?

Your score may drop temporarily if the closed card had a high credit limit, because your available credit shrinks and your utilization ratio rises. The effect is usually temporary — as you pay down other balances, your utilization ratio improves and your score recovers. The size of the drop depends on how much available credit the closed card represented.

Is it better to close a card or let it stay inactive?

If the card has no annual fee, keeping it open is usually better for your score because it preserves your available credit and maintains your account age. If the card has an annual fee and you are not using it, closing it makes sense because you save money. The credit score impact is similar either way, but the annual fee is a real cost.

Can I reopen a card after the issuer closes it?

You cannot reopen a closed account, but you can often apply for a new card from the same issuer. However, a new application will trigger a hard inquiry on your credit report and you will lose the account age benefit of the original card. It is usually better to keep the card open in the first place.

Does not using a card hurt my credit score directly?

No. Simply not using a card does not lower your score. The only risk is that the issuer will close it after months of inactivity, and that closure can affect your score by changing your available credit. Making one small purchase every few months prevents closure and avoids this risk entirely.