What Happens to Your Credit Card When You Stop Using It
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 pay 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 using compared to your total limit. When you stop using a card, you're not hurting that ratio directly. What hurts is when the issuer closes the account after months of no activity — that removes available credit from your total, which can raise your utilization ratio and lower your score.
The timing varies by card issuer. Some close accounts after six months of inactivity; others wait a year or longer. Discover, for example, states it may close accounts inactive for 12 months, though it doesn't always do so immediately. American Express has closed accounts after as little as three months of no activity, though this varies. The key is that you don't control when this happens — the issuer does.
Key Takeaways
- Unused credit cards stay open unless the issuer closes them for inactivity, which typically happens between six months and one year of no charges.
- When an issuer closes an account, your available credit shrinks, which can raise your credit utilization ratio and lower your credit score by 10 to 50 points or more.
- A small charge every few months — even a few dollars — keeps the account active and prevents closure.
- Closing a card yourself has the same effect on your score as the issuer closing it, so inactivity is not worse than cancellation.
- Cards with annual fees cost you money if unused, but cards with no annual fee have no downside to keeping open.
How inactivity affects your credit utilization ratio
Your credit utilization ratio is the percentage of your total available credit that you're actually using. If you have three cards with $5,000 limits each ($15,000 total) and you're carrying a $3,000 balance on one card, your utilization is 20 percent. Credit scoring models treat lower utilization as better — it suggests you're not desperate for credit.
When an issuer closes an unused card, that $5,000 limit disappears from your total available credit. Now your total is $10,000 instead of $15,000. If you still owe $3,000 on another card, your utilization jumps to 30 percent. That change alone can lower your score by 10 to 50 points, depending on how close you already were to higher utilization thresholds. The older your credit history and the fewer accounts you have, the bigger the impact tends to be.
This is why keeping unused cards open — especially older ones with high limits — can actually help your score, as long as there's no annual fee eating into your wallet.
The difference between inactivity and closing the card yourself
Many people think that if they're not using a card, they should close it to avoid temptation or clutter. But closing a card yourself has the same effect on your score as the issuer closing it for inactivity: you lose that available credit, and your utilization ratio rises. The only difference is timing and control — you choose when it happens instead of waiting for the issuer to decide.
If you're trying to protect your score, keeping the card open (and unused) is better than closing it. The exception is if the card has an annual fee. In that case, you're paying money for credit you're not using, so closing it makes financial sense even if it costs you a few points on your score temporarily.
How to keep a card active without using it regularly
The simplest way to prevent closure is to charge something small to the card every few months. This could be a $5 coffee, a $10 streaming subscription, or even a single dollar purchase if the merchant allows it. The amount doesn't matter — the issuer just needs to see activity. Pay it off in full when the bill arrives so you don't carry a balance and pay interest.
Some people set up a small recurring charge — like a subscription service — and put it on the card automatically. This removes the need to remember to use it. Just make sure you check the card's statement occasionally to catch fraud or unexpected charges.
Another option is to use the card for a planned purchase you were going to make anyway. If you know you're buying groceries or gas next month, charge it to the unused card instead of your regular one. This keeps the account active without changing your spending habits.
Annual fees and whether to keep the card
If your unused card has an annual fee, the math is straightforward: you're paying money for credit you're not using. In this case, closing the card makes sense financially, even if it temporarily lowers your score. The fee typically ranges from $25 to $500 or more, depending on the card's rewards or perks.
Before you close it, check whether the issuer will waive the fee if you call and ask. Some issuers, particularly for premium cards, will remove the fee for a year or two if you've been a long-standing customer with good payment history. It costs them nothing to waive it, and they'd rather keep your account open than lose you entirely.
If the fee isn't waived and you're not using the card, closing it is the right call. The temporary score dip is worth avoiding an annual charge you don't benefit from.
How long inactivity takes to hurt your score
Your score doesn't drop the moment you stop using a card. The damage happens in stages. First, the issuer stops reporting activity on the account — this doesn't hurt your score, it just means the account looks dormant. Then, after several months of inactivity (usually six to twelve), the issuer may close the account. That's when your available credit shrinks and your score drops.
The drop itself is usually temporary. If you have other accounts in good standing and your overall credit history is solid, your score typically recovers within a few months as the closed account ages and becomes less relevant to the scoring model. However, if you have few accounts or already high utilization on your other cards, the impact can last longer.
The best approach is to prevent closure in the first place by using the card occasionally, rather than dealing with the score impact afterward.
What happens to rewards you've earned but not used
If your unused card earns cash back or points, those rewards don't disappear when the account closes — they remain in your account. However, you'll need to redeem them before or shortly after closure, depending on the issuer's policy. Some issuers let you redeem rewards for up to a year after the account closes; others require redemption before closure.
Check your card's terms or call the issuer before the account closes to find out the deadline. Don't assume you can redeem rewards months later — some programs do expire them. If you have a substantial rewards balance, this is another reason to keep the card active until you've used those rewards.
Frequently Asked Questions
How often do I need to use a card to keep it from closing?
Most issuers won't close an account for inactivity if you use it at least once every six to twelve months. A single small charge is enough. Some issuers are more lenient and won't close accounts for years of inactivity, while others are stricter. If you're unsure about a specific card, call the issuer and ask their inactivity policy.
Will keeping an unused card open hurt my score?
No. An open, unused card with a zero balance actually helps your score by increasing your available credit and lowering your utilization ratio. The only way it hurts is if the issuer closes it for inactivity, which removes that available credit.
Can I reopen a card after the issuer closes it?
Not usually. Once an issuer closes an account, you typically cannot reopen it. You would have to apply for the card again as a new customer, which means a hard inquiry on your credit report and a new account age. It's better to keep the card active than to deal with closure and reapplication.
Does having multiple unused cards hurt my credit?
Multiple unused cards don't hurt your score as long as they stay open. In fact, they help by increasing your total available credit and lowering your utilization ratio. The risk is if the issuers close them all for inactivity — then you lose that available credit all at once. Keeping them active with occasional small charges prevents this.
What if I want to close a card but keep my score from dropping?
You can't avoid a score drop when you close a card — the loss of available credit will lower your score temporarily. However, the impact is smaller if you close cards with low limits and keep cards with high limits open. If you must close a card, do it when your overall credit health is strong and your utilization is low on your remaining cards.