Not using a credit card does hurt your score, but the damage is usually small and comes from two specific causes, not from inactivity itself
Leaving a credit card unused will not tank your credit score. However, it can lower your score slightly over time through two mechanisms: a rising credit utilization ratio and the card's eventual closure by the issuer. The first happens when ready; the second takes months. Neither is catastrophic, but both are measurable. If you have other active cards or accounts, the impact shrinks further.
The real risk is not the card sitting in a drawer — it is what happens when the issuer closes it for non-use, or when you forget about it entirely and miss a payment years later. Understanding which outcome is likely depends on your card type and your overall credit profile.
Key Takeaways
- Credit utilization — the percentage of your credit limit you are using — rises when an unused card's limit is removed from the calculation, which can lower your score by a few points.
- Issuers typically close inactive cards after 6 to 12 months of no activity, and a closed account can further reduce your score in the short term.
- A closed card still reports to credit bureaus and counts toward your credit history length, so the damage is temporary and usually modest.
- Keeping a card active requires only occasional use — a small purchase every few months, paid in full, is enough to prevent closure.
- If you want to close a card yourself, do it after paying off the balance, and do it when your other cards have low utilization.
How credit utilization changes when a card sits unused
Your credit utilization ratio is the total amount you owe across all cards divided by your total credit limits. If you have two cards with $5,000 limits each and you owe $2,000 on one, your utilization is 20 percent ($2,000 divided by $10,000). If you stop using one card and it gets closed, your total limit drops to $5,000, and your utilization jumps to 40 percent ($2,000 divided by $5,000).
Credit scoring models treat utilization as a signal of financial stress. Higher utilization suggests you are relying more heavily on borrowed money. A jump from 20 percent to 40 percent can lower your score by 10 to 50 points, depending on the model and your other accounts. The damage is real but not permanent — as soon as you pay down the balance or open a new card, utilization falls again.
The impact is smaller if you have low overall utilization to begin with. If you owe $500 across all cards and have $50,000 in total limits, closing a $5,000 card barely changes the ratio. Conversely, if you are already using 50 percent or more of your limits, an unused card's closure can hurt noticeably.
When and why issuers close inactive accounts
Most credit card issuers close accounts that show no activity for 6 to 12 months. Some are more aggressive; others are more lenient. The issuer's reasoning is straightforward: an unused card generates no fees or interest, so there is no profit in keeping it open. Closing it also reduces the issuer's risk exposure.
You will usually receive a notice before closure, though the timing and clarity of that notice varies. Some issuers send a letter; others send an email. Some give you 30 days to use the card before closing; others close without warning. Check your card's terms or call the issuer if you are unsure of their policy.
A closed account does not disappear from your credit report when ready. It remains visible for seven years and continues to count toward your average account age — a factor that makes up about 15 percent of your credit score. So a closed card that you held for five years still helps your score in that way, even after closure.
The short-term score drop after closure
When an issuer closes your account, your score typically drops by 5 to 20 points in the month of closure, primarily because your utilization ratio rises. This is temporary. Over the following months, as you pay down balances or as the closed account ages, the impact shrinks. After a year, the closure itself has almost no effect on your score.
The drop is smaller if you have multiple open accounts. A person with five active cards and one closed card will see less damage than someone with two active cards and one closed card, because the closed card represents a smaller share of their total credit profile.
How to keep a card active without using it regularly
The simplest way to prevent closure is occasional use. You do not need to carry a balance or spend heavily. A single small purchase every three to six months — a coffee, a gas fill-up, a subscription renewal — is enough to signal activity to the issuer. Pay the full balance when the statement arrives, and you avoid interest charges while keeping the account open.
Some people set up a recurring small charge on an old card, such as a $5 monthly subscription, and pay it automatically. This requires almost no effort and guarantees the account stays active. Others straightforward use the card once or twice a year when they remember.
If you prefer not to use the card at all, contact the issuer directly and ask about their inactivity policy. Some will keep an account open indefinitely if you request it, especially if you have a long history with them or a high credit score. This is not may provide, but it is worth asking.
Closing a card yourself versus letting the issuer close it
If you decide you no longer want a card, you can close it yourself rather than wait for the issuer to do it. The score impact is similar either way — a temporary dip from rising utilization — but closing it yourself gives you control over the timing.
The best time to close a card is when your other cards have low balances. If you have $1,000 in total debt across $20,000 in limits, closing a card will have minimal impact. If you have $10,000 in debt across $15,000 in limits, closing a card will hurt more. Pay down your balances first, then close the card.
Always pay off the balance before closing. If you close a card with an outstanding balance, you still owe the money, and the issuer will continue to report the account as open until it is paid. This defeats the purpose and keeps the account on your report longer.
When an inactive card is actually helpful
An old, unused card can be one of your most valuable credit accounts, even if you never touch it. Credit scoring models reward account age — the longer you have held an account, the better. A card you opened ten years ago and have not used in five years still counts toward your average account age, which makes up about 15 percent of your score.
Closing that card removes that age from the calculation, which can lower your score slightly. Keeping it open costs you nothing and preserves that benefit. This is why financial advisors often recommend keeping old cards open even after you stop using them, as long as there is no annual fee.
If the card does charge an annual fee, the math changes. A $95 annual fee for a card you do not use is not worth the small boost to your score. In that case, closing it makes sense. But a no-annual-fee card sitting in a drawer is usually worth keeping.
Frequently Asked Questions
Will my credit score go up if I close a card I am not using?
No. Closing a card typically lowers your score slightly because it reduces your total available credit and raises your utilization ratio. The only exception is if the card charges an annual fee — in that case, closing it saves you money, and the score impact is usually worth it.
How long does it take for an issuer to close an inactive card?
Most issuers close accounts after 6 to 12 months of no activity. Some are faster; some are slower. You will usually receive notice before closure, though the notice may come by mail or email. If you want to know your card's specific policy, call the issuer's customer service number on the back of the card.
Can I reopen a card after the issuer closes it?
Sometimes. If the closure was recent and your account was in good standing, the issuer may reopen it if you call and ask. If it has been months or years, reopening is unlikely. Your best option is to explore for a new card from the same issuer or a different one.
Does an inactive card hurt my credit score more than an active one?
An inactive card itself does not hurt your score. The damage comes only if the issuer closes it, which raises your utilization ratio. An active card with a balance can hurt your score more because the balance itself counts against you. An inactive card with a zero balance is neutral or slightly positive.
What is the difference between a closed account and a paid-off account?
A paid-off account is one with a zero balance that remains open. A closed account is one the issuer or you have shut down. A closed account still reports to credit bureaus and still counts toward your history, but it no longer contributes to your available credit. A paid-off account does both.