Your card stays open but your credit score may drop
If you stop using a credit card but keep the account open, the card itself does not disappear. The issuer will not close it for inactivity alone — most banks let accounts sit unused for years. But your credit score can still take a hit, because credit scoring models reward active, managed debt. A card you never touch stops showing recent payment history, and your credit utilization ratio (the amount of credit you are using versus the amount available to you) can shift in ways that lower your score.
The damage is usually small if you have other active accounts, but it matters more if this card represents a large chunk of your available credit. For example, if you have a $5,000 limit card you never use and a $2,000 limit card you use regularly, your utilization on the active card looks worse than it would if you spread spending across both.
Key Takeaways
- Unused cards stay open indefinitely at most banks, but your credit score may drop because payment history stops updating and your available credit sits idle.
- If the card has an annual fee, you will keep paying it even if you never swipe the card, so check your statement regularly or call the issuer to confirm the fee structure.
- Closing a card you have held for years can hurt your score more than leaving it open unused, because credit age and account diversity both factor into scoring.
- The safest approach is to use the card once or twice a year for a small purchase and pay it off when ready, keeping the account active without carrying a balance.
- If you decide to close the card, do it when you have other accounts in good standing and are not planning to borrow money in the next six months.
Annual fees eat money even if you never use the card
Many credit cards charge an annual fee whether you use them or not. Premium cards marketed to high earners often charge $95 to $500 per year. Even basic cards sometimes carry a $39 annual fee. If you are not using the card, you are paying money for nothing.
The fee posts to your account once a year, usually on the anniversary of when you opened the card. If you do not notice it, it can sit there unpaid and damage your payment history. Check your statement every month or set a phone reminder for the month your card anniversary falls on. If you find an annual fee on a card you do not use, call the issuer and ask them to waive it. Many will do this once, especially if you have been a customer for years. If they refuse, closing the card makes financial sense.
Your credit score drops when payment history stops updating
Credit scoring models like FICO and VantageScore weight recent payment history heavily. When you use a card and pay it on time, that payment shows up on your credit report and signals to lenders that you manage debt responsibly. When you stop using the card, new payments stop appearing, and your report becomes stale.
The impact depends on how many other active accounts you have. If you have five credit cards and you stop using one, the other four are still building recent payment history. If that unused card is your only credit account, the damage is larger. The score drop is usually temporary — it rebounds if you start using the card again — but it can cost you points at a moment when you are trying to borrow money.
Closing the card can hurt your score more than leaving it open
Many people assume closing an unused card is the right move. It is often the wrong one. When you close a card, two things happen to your credit report: your available credit shrinks, and your utilization ratio goes up. If you have a $10,000 balance across all cards and $30,000 in total available credit, your utilization is 33 percent. Close a card with a $10,000 limit and your available credit drops to $20,000, pushing utilization to 50 percent. That single action can lower your score by 10 to 50 points.
Closing also removes the account from your credit history after seven years, which can lower your average account age. Lenders see older accounts as a sign of stability. If you close your oldest card, your credit profile looks younger and riskier, even if you have been managing credit for decades.
The exception: if the card has an annual fee and the issuer will not waive it, closing it makes sense. The fee costs more than the score hit.
Dormant cards can be closed by the issuer without warning
Although most banks do not close cards for inactivity, some do. The timeframe varies — some issuers close accounts after 12 months of no activity, others after three years. There is no federal rule, so it depends on the bank and the card type. When an issuer closes your account, they report it to the credit bureaus as "closed by creditor," which can lower your score because it signals that the lender ended the relationship.
You cannot predict when or if this will happen, which is why the safest move is to use the card occasionally. A small purchase every six to twelve months — a gas station fill-up, a streaming subscription, anything — keeps the account active in the issuer's system. Pay it off when ready so you do not carry a balance or pay interest.
Fraud risk stays the same whether you use the card or not
An open account is an open account. If your card number is compromised, a thief can use it whether you have been using it or not. The good news: federal law caps your liability at $50 for unauthorized charges, and most issuers waive that fee entirely if you report fraud quickly. Keep your unused cards in a safe place, check your statements monthly (or set up email alerts), and report any suspicious activity right away.
If you are worried about fraud on a card you never use, you have two real options: close it, or freeze your credit file with the three major bureaus (Equifax, Experian, and TransUnion). A freeze prevents anyone from opening new accounts in your name, but it does not protect existing accounts. Closing is simpler if you have decided you do not want the card.
The best strategy: use it once or twice a year
If you want to keep the card open for credit history and available credit, but you do not want to use it regularly, the middle ground is to charge something small once or twice a year and pay it off when ready. This keeps the account active, shows recent payment history, and costs you nothing if there is no annual fee.
Set a phone reminder for six months after your last purchase. When it goes off, buy something small — a coffee, a tank of gas, a dollar item online — and pay the full balance the same day or within a few days. The issuer sees the activity, the account stays open, and your credit report shows you manage the card responsibly. This approach takes five minutes twice a year and protects your credit score without any financial cost.
Frequently Asked Questions
Will my credit card company close my account if I don't use it?
Some issuers close accounts after 12 to 36 months of inactivity, but there is no universal rule. When they do close an account, they report it as "closed by creditor," which can lower your score. Using the card once or twice a year prevents this.
Does having an unused credit card hurt my credit score?
It can, but usually only a little. Your score may drop because payment history stops updating and your available credit sits idle. The damage is worse if this card represents a large portion of your total available credit or if you have few other active accounts.
Should I close a credit card I'm not using?
Usually no, unless the card has an annual fee the issuer will not waive. Closing shrinks your available credit and can lower your score more than leaving it open unused. If you do close it, do so when you are not planning to borrow money for at least six months.
What's the difference between closing a card and just not using it?
Not using it keeps the account open, preserves your available credit, and maintains your account age. Closing it removes all three benefits. However, if the card has an annual fee, closing saves you money and may be worth the score hit.
Can I use an old credit card just to keep it active?
Yes. Charge something small once or twice a year and pay it off when ready. This keeps the account active without carrying a balance or paying interest, and it shows lenders you manage the card responsibly.