What Happens When You Don't Use a Credit Card

Your credit card doesn't hurt you just by sitting unused

A credit card you never use won't damage your credit score or cost you money through interest, because you're not borrowing anything. The card issuer won't charge you an annual fee if you have a no-annual-fee card — and most cards today don't charge one. The real risk isn't what happens to you; it's what you might miss out on, and what the card company might do after years of inactivity.

If you opened a card but decided credit isn't for you right now, leaving it in a drawer is fine. If you opened a card to build credit history and then stopped using it, that's a different situation — one where inactivity can actually work against your credit score over time.

Key Takeaways

• A card with no annual fee costs nothing to keep open, even if you never swipe it or use it online.
• Unused cards can hurt your credit score if the issuer closes the account due to inactivity, because closing an old account shortens your credit history.
• Card issuers typically close inactive accounts after 12 to 24 months of no activity, though the exact timeline varies by bank.
• Using a card once or twice a year — even for a small purchase — usually keeps it active and prevents closure.
• If you're building credit, keeping old cards open and occasionally active is often better for your score than closing them.

When the card issuer closes your account for inactivity

Most card issuers will close your account if you don't use it for 12 to 24 months. Some banks are more aggressive; others are more patient. When they close it, they send you a notice in the mail, but the damage to your credit score happens whether you see the notice or not.

The damage comes from two directions. First, closing an old account removes it from your active credit history. Credit scoring models reward you for having a long history of accounts in good standing — the older the account, the better. When that account closes, you lose those years of history. Second, closing an account reduces your total available credit. If you had a $5,000 limit and you close that card, your available credit drops by $5,000, which can raise your credit utilization ratio (the percentage of your total credit limit you're actually using). A higher utilization ratio lowers your score.

This matters most if you're trying to build or repair your credit. If your credit is already strong and you have multiple cards, losing one old card is a smaller hit. But if you opened a card specifically to build history, letting the issuer close it undoes some of that work.

How to keep a card active without using it regularly

You don't need to use a card every month to keep it open. Most issuers just need to see some activity — any activity — within their inactivity window. A single small purchase once or twice a year is usually enough. You could put a subscription you already pay for on the card (a streaming service, a gym membership, a magazine) and let it charge automatically. You could use it to buy gas once every few months. You could make one online purchase a year. The point is just to show the issuer that the account is still yours and you haven't abandoned it.

If you're worried about forgetting, set a phone reminder for once every six months to use the card for something small. Or check your card's online account every few months — many issuers will send you a notice before they close an account for inactivity, and logging in might reset the inactivity clock.

The difference between closing a card yourself and the issuer closing it

If you decide you don't want a card anymore, you have two choices: close it yourself or let it sit unused until the issuer closes it. Closing it yourself is usually better for your credit score, even though that sounds backwards.

Here's why: when you close an account, you control the timing and the reason. You can close it after you've built enough credit history that losing one account won't hurt much. When the issuer closes it, they do it on their schedule, and it often comes as a surprise. More importantly, a closed account you closed yourself stays on your credit report for years and continues to show your good payment history. An account the issuer closed due to inactivity might be reported differently — some issuers note "closed by issuer" rather than "closed by consumer," which can look worse to lenders.

If you want to close a card, call the issuer's customer service number on the back of the card and ask them to close the account. They may ask why, but you don't have to give a reason. Once it's closed, you're done — no more charges, no more inactivity risk.

Cards with annual fees and unused cards

If your card charges an annual fee, not using it costs you money. Annual fees range from $25 to several hundred dollars depending on the card, and they're charged whether you use the card or not. If you have a card with an annual fee and you're not using it, you should either close it or start using it enough to justify the fee.

Some premium cards offer benefits that justify the fee even if you don't use the card much — travel credits, lounge access, or cash back on certain categories. If you're paying the fee but not getting the benefits, closing the card makes sense. If you're getting the benefits, keeping it open is worth the cost.

Before you close a card with an annual fee, check whether the issuer will waive the fee if you ask. Some banks will waive the next year's fee if you call and request it, especially if you've been a long-term customer. It's worth a quick phone call.

What happens to rewards you haven't redeemed

If your card earns cash back or points and you have a balance sitting in your rewards account, those don't disappear just because you stop using the card. Rewards typically stay in your account indefinitely, even after the card is closed. You can usually redeem them online or by calling customer service at any time.

The one exception is if your card's terms say rewards expire after a certain period of inactivity. This is rare, but it happens with some airline cards and specialty rewards programs. Check your card's terms or call the issuer if you have a large rewards balance and you're planning to stop using the card. If expiration is a risk, redeem your rewards before you close the account.

Building credit versus not using credit

There's a difference between "I don't want to use credit cards" and "I opened a card to build credit and now I'm not using it." If you genuinely don't want to use credit, that's a valid choice — you can build credit through other means, like becoming an authorized user on someone else's card, taking out a credit-builder loan, or using a secured credit card that requires a deposit. Not using credit won't hurt you; it just means you won't have a credit score, which only matters if you plan to borrow money later.

But if you opened a card specifically to build credit history, stopping using it defeats the purpose. Credit scoring models reward you for showing you can borrow responsibly over time. An unused card doesn't show responsibility — it shows nothing. A card you use occasionally and pay off in full shows that you can handle credit, which is what lenders want to see.

Frequently Asked Questions

Will my credit score drop if I don't use a credit card?

Not immediately. Your score only drops if the issuer closes the account due to inactivity. Using the card once or twice a year prevents closure and keeps your score stable. If you're building credit, occasional use is better than no use at all.

How long can I leave a credit card unused before the issuer closes it?

Most issuers close accounts after 12 to 24 months of inactivity, but this varies by bank. Some are more lenient; others are stricter. Check your card's terms or call the issuer if you want to know the exact timeline for your card.

Can I reopen a card after the issuer closes it?

You can ask the issuer to reopen it, but they're not required to say yes. It's easier to keep a card open by using it occasionally than to try to reopen it after closure. If they do reopen it, the account history usually stays on your credit report.

Should I close a credit card I'm not using?

It depends on your credit situation. If you have multiple cards and strong credit, closing one unused card won't hurt much. If you're building credit or have limited credit history, keeping the card open and using it occasionally is usually better for your score than closing it.

What if I have a card with an annual fee I'm not using?

Close it or call and ask the issuer to waive the fee. There's no reason to pay for a card you're not using. Some issuers will waive the fee if you ask, especially if you've been a customer for a while.