What Happens When You Stop Using Your Credit Card

Your card stays open, but your credit score may drop

If you stop using a credit card entirely, the card itself doesn't close automatically — your account remains open as long as you keep paying the annual fee (if there is one) and the issuer doesn't close it for inactivity. But your credit score can take a hit. Here's why: credit scoring models look at how much of your available credit you're actually using, called your credit utilization ratio. When you stop using a card, you're not actively lowering that ratio — you're just removing one card from the calculation, which can sometimes make your overall utilization look worse.

The bigger issue is that inactive cards can hurt the average age of your accounts. Credit bureaus track how long each of your accounts has been open. When you have a mix of old and new accounts, that helps your score. If you close an old card or let it sit unused for years and the issuer eventually closes it, you lose that account history, and your average age drops. That drop can lower your score by 10 to 50 points, depending on how old the card was and what else is on your credit report.

Key Takeaways

• Unused cards stay open unless the issuer closes them for inactivity, which typically happens after 6 to 12 months of no activity.
• Your credit score can drop when an old account closes because the average age of your accounts decreases.
• A small purchase every few months keeps a card active and prevents the issuer from closing it.
• Closing a card yourself is usually worse for your score than leaving it open unused, because closing removes the available credit from your utilization calculation.
• Cards with annual fees are worth canceling if you're not using them, but cards with no annual fee are worth keeping open even if dormant.

When issuers close inactive accounts

Most credit card issuers have an inactivity policy. If you don't use your card for a set period — usually 6 to 12 months, though some companies wait longer — they may close the account without asking you. The exact timeline varies by issuer. American Express, for example, is known for closing cards after about a year of no activity, while some bank-issued cards may stay open longer.

When the issuer closes the account, they send you a notice (usually by mail), and the closed account shows up on your credit report. A closed account in good standing doesn't hurt your score as badly as a missed payment, but it does remove that available credit from your utilization calculation. If you had a $5,000 limit on that card and weren't using it, closing it means you've lost $5,000 in available credit, which can push your overall utilization ratio up and lower your score.

How to keep a card active without using it much

The simplest way to prevent closure is to use the card occasionally — even a small purchase every few months is enough. Set up an automatic payment for something you buy regularly, like a streaming service or gas, and then pay off the full balance when the bill arrives. This keeps the account active in the issuer's system and shows you're using the card, without requiring you to carry a balance or pay interest.

Another approach is to set a phone reminder to make one small purchase per quarter. A $5 coffee or a $10 purchase at a drugstore counts. The key is that the issuer sees transaction activity. They're less likely to close an account that's generating even tiny amounts of transaction volume than one that's completely dormant.

The difference between closing a card and letting it stay open

Closing a card yourself is almost always worse for your credit score than leaving it open unused. When you close a card, that available credit disappears immediately from your utilization calculation. If you have $10,000 in total credit limits across all your cards and you're using $3,000, your utilization is 30%. If you close a card with a $5,000 limit, your total available credit drops to $5,000, and suddenly you're using $3,000 of $5,000 — a 60% utilization. That jump can lower your score by 20 to 50 points.

An open but unused card doesn't have that effect. The available credit still counts toward your total, even if you're not using it. The only downside is if the issuer closes it for inactivity, which removes the account from your history. But that's a slower, smaller hit than closing it yourself. You have time to make a small purchase and prevent that closure from happening at all.

Cards with annual fees versus cards with no annual fee

If your card has an annual fee and you're not using it, canceling makes financial sense. There's no point paying $95 or $150 a year for a card you don't touch. Call the issuer and ask if they'll waive the fee before you cancel — some will, especially if you've been a customer for years. If they won't, close the account and accept the small credit score dip as the cost of avoiding the annual charge.

If your card has no annual fee, keep it open even if you're not using it. The only cost to you is the effort of making one small purchase every few months to prevent inactivity closure. The credit score benefit of keeping an old account open with available credit usually outweighs the hassle. You're essentially getting free credit history and available credit just by doing nothing.

What happens to rewards you don't redeem

Rewards points or cash back you've earned don't expire just because you stop using the card — they sit in your account until you redeem them or the card is closed. However, once the issuer closes the account, you typically have a limited window (often 30 to 90 days) to redeem any remaining rewards before they're forfeited. Check your card's terms to see the specific policy.

If you have a significant balance of unredeemed rewards, redeem them before the account closes or before you request closure yourself. Some issuers are stricter than others about this window, so don't assume you'll have time after closure is announced. Log into your account now and check what rewards you have sitting there — if it's a meaningful amount, that's another reason to keep the card active with occasional small purchases.

Frequently Asked Questions

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

Most issuers close accounts after 6 to 12 months of no activity, but the exact timeline varies. American Express tends to be faster, while some bank cards may wait longer. Check your card's terms or call the issuer to ask their specific policy.

Does an unused credit card hurt my credit score?

An unused card itself doesn't hurt your score — it actually helps by keeping your utilization ratio lower. The damage comes if the issuer closes it for inactivity, which removes the account history and available credit from your report.

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

Only if it has an annual fee. Cards with no annual fee are worth keeping open, even unused, because closing them lowers your score more than leaving them dormant. Make one small purchase every few months to prevent the issuer from closing it.

What happens to my rewards if my card is closed?

Rewards don't expire while the card is open, but once the issuer closes the account, you usually have 30 to 90 days to redeem them before they're lost. Redeem any balance before closure to avoid losing the rewards.

Can I reopen a card the issuer closed for inactivity?

Sometimes. Call the issuer and ask if they'll reopen the account. They may agree, especially if you were in good standing. If they won't, you can always apply for a new card from the same issuer, though a new application will trigger a hard inquiry on your credit report.