Not using a credit card does not directly hurt your credit score, but inactivity can create problems over time
A credit card sitting unused will not damage your score straightforward because you are not charging on it. The three major credit bureaus — Equifax, Experian, and TransUnion — do not penalise you for zero activity. However, inactivity can trigger secondary effects that do harm your score: the card issuer may close the account, which shrinks your available credit and raises your credit utilisation ratio. A closed account also stops building your payment history, which makes up 35% of your score.
The real risk is not the non-use itself but what happens when a card issuer decides to close an inactive account. Most issuers will close a card after 6 to 12 months of no activity, though the exact timeline varies by bank and card type. When that happens, your credit mix — the variety of credit types you hold — may narrow, and your total available credit drops, both of which can lower your score by a small amount.
Key Takeaways
- Credit card issuers typically close accounts after 6 to 12 months of inactivity, which can lower your score by reducing your available credit.
- Your credit utilisation ratio — the percentage of your credit limit you are using — rises when available credit shrinks, even if you owe the same dollar amount.
- A closed account stops adding to your payment history, which counts for 35% of your credit score.
- Making one small purchase every few months and paying it off keeps an account active without requiring regular spending.
How inactivity leads to account closure
Card issuers close inactive accounts because dormant cards represent risk with no revenue. If you are not using the card, the bank is not earning interchange fees from merchants, and the account costs money to maintain. The issuer has no incentive to keep it open indefinitely.
The timeline before closure varies. Some issuers close cards after 6 months of zero activity; others wait 12 months or longer. A few premium cards or cards with annual fees may stay open longer because the annual fee generates revenue. Check your cardholder agreement or contact your issuer to learn their specific policy — this information is usually in the fine print under "Account Closure" or "Inactive Account."
Once closed, the account remains on your credit report for up to seven years, but it stops being an active account. This distinction matters: active accounts build your payment history and count toward your credit mix. Closed accounts do neither.
The credit utilisation problem
Your credit utilisation ratio is the total amount you owe divided by your total available credit across all cards. If you have three cards with $5,000 limits each ($15,000 total available) and you owe $3,000, your utilisation is 20%. Credit scoring models favour utilisation below 30%.
When an inactive card closes, your available credit shrinks. Using the same example: if one of those $5,000 cards closes, your available credit drops to $10,000. Now you still owe $3,000, but your utilisation jumps to 30%. That change alone can lower your score by a few points, even though you have not charged anything new or missed a payment.
This effect is small if you have multiple cards and low overall utilisation. It is more noticeable if you have few cards or already carry balances on other accounts.
How payment history stops building
Payment history is the largest factor in your credit score at 35%. Every on-time payment you make adds to this history. A closed account stops accumulating new payments, which means you lose the opportunity to build this history on that card.
The impact is gradual. Your existing payment history does not disappear when an account closes — those on-time payments remain on your report. But you stop adding to it, so over time the account becomes less relevant to your score. This matters most if you have a short credit history or few other active accounts.
When not using a card is actually fine
If you have multiple credit cards and low overall utilisation, leaving one card unused for a while will not meaningfully harm your score. The impact of one closed account is usually small when you have other active accounts building your history and keeping your utilisation low.
You might also choose not to use a card if you are trying to reduce spending or simplify your finances. In that case, the small score impact is a trade-off you are making intentionally. The damage is not severe — typically a few points — and your score will recover once you reopen an account or open a new one.
How to keep a card active without regular spending
If you want to keep a card open but do not want to use it regularly, make one small purchase every few months and pay it off when ready. A $5 coffee or a small subscription charge counts as activity. Pay the full balance before the statement closes, so you owe nothing and pay no interest.
This approach keeps the account active in the issuer's system, prevents closure, and continues building your payment history. It requires minimal effort and no financial cost. Some people set a recurring small charge — like a streaming service — and put it on the card they want to keep active, then pay it off each month.
Alternatively, if you have a card you truly do not want to use, you can contact the issuer and ask them to keep the account open despite inactivity. Some issuers will do this, especially if you have a long history with them or a high credit limit. It never hurts to ask.
The difference between closed and dormant accounts
A closed account is one the issuer has shut down, usually after inactivity. A dormant account is one you have closed yourself or that remains open but unused. The distinction matters for your credit report.
A dormant account that remains open continues to count toward your available credit and credit mix, even if you are not using it. A closed account does not. If you want to keep a card in your back pocket without using it, ask the issuer whether they will keep it open despite zero activity. Some will; some will not. If they will not, your only option is to use it occasionally.
Frequently Asked Questions
Will my credit score drop if I stop using one credit card?
Not when ready. Your score will only drop if the issuer closes the account due to inactivity, which usually takes 6 to 12 months. The drop is typically small — a few points — and happens because your available credit shrinks, raising your utilisation ratio.
How often do I need to use a credit card to keep it open?
Most issuers require at least one transaction every 6 to 12 months. The transaction can be small — even a $1 charge counts — as long as you pay the bill. Check your cardholder agreement for your specific issuer's policy.
Does paying off a card in full hurt my credit score?
No. Paying in full is better for your score than carrying a balance. A $0 balance lowers your utilisation ratio, which helps your score. The only downside is that you are not building payment history on that card if you pay before the statement closes, but the utilisation benefit outweighs this.
Can I reopen a credit card after the issuer closes it?
Sometimes. If the issuer closed it for inactivity, you can often call and ask them to reopen it. They may agree, especially if you have a good payment history with them. If they refuse, you would need to open a new account, which triggers a hard inquiry on your credit report.
What happens to my credit score if I close a credit card myself?
Closing a card yourself has the same effect as the issuer closing it: your available credit shrinks, your utilisation ratio rises, and you stop building payment history on that account. Your score may drop by a few points. The impact is smaller if you have multiple other active cards.