Your card stays open and active, but inactivity can trigger account closure, damage your credit score, and cost you rewards you've already earned
If you stop using a credit card, the issuer doesn't when ready close it or penalize you. But inactivity has real consequences over time. Your card account may be closed without warning after months of no activity, your credit score can drop because your available credit shrinks, and any rewards points or cash back you've accumulated may expire. The exact timeline and rules depend on the card issuer and the specific card agreement.
The most common outcome is account closure. Most card issuers will close an account after 6 to 12 months of no activity — no purchases, no balance transfers, no cash advances. When they close it, they notify you by mail, but the damage to your credit profile happens when ready. A closed account reduces your total available credit, which raises your credit utilization ratio even if you owe nothing. That ratio is one of the largest factors in your credit score calculation.
Key Takeaways
- Card issuers typically close inactive accounts after 6 to 12 months with no transactions, though the exact timeline varies by issuer.
- A closed account lowers your available credit and raises your credit utilization ratio, which can drop your credit score by 10 to 50 points or more.
- Rewards points and cash back often expire if you don't use the card, even if your account stays open — check your card agreement for the expiration policy.
- Keeping a card active requires only occasional use; a small purchase every few months is enough to prevent closure in most cases.
- Closing the card yourself has the same credit score impact as the issuer closing it, so inactivity and voluntary closure are roughly equivalent.
How inactivity affects your credit score
When a card issuer closes your account due to inactivity, your credit score typically drops. The drop happens because your total available credit decreases. If you have a $5,000 limit on a card and you're carrying $2,000 in debt across all your cards, your utilization ratio is 40 percent. If that card closes, your available credit drops to whatever your other cards offer, and your utilization ratio rises — even though you haven't borrowed any additional money.
The size of the score drop depends on how much available credit you lose and how many other accounts you have. Someone with only one credit card who loses a $5,000 limit will see a larger drop than someone with five cards and $25,000 in total available credit. Drops of 10 to 50 points are common, though larger drops are possible if the closed card represented a significant portion of your available credit.
The damage is temporary but not when ready. Your score begins recovering once you lower your utilization ratio again — by paying down debt or opening a new account — but the closed account itself stays on your credit report for up to seven years. During that time, it signals to lenders that you had an account closure, which some lenders view as a negative mark.
When rewards and cash back expire
Most credit card issuers have an expiration policy for rewards points and cash back, but the rules vary widely. Some cards expire rewards after 12 months of account inactivity. Others expire rewards after a set number of years regardless of activity — typically three to five years. A few cards, particularly some premium travel cards, don't expire rewards at all as long as the account remains open.
The expiration policy is in your card agreement, usually in a section labeled "Rewards Terms" or "Rewards Program." If you've accumulated points or cash back and haven't used the card in months, check that section before the account closes. Some issuers will send you a notice before expiring your rewards, but you shouldn't rely on that — the burden is on you to track your own account.
If you have a substantial rewards balance and the card is at risk of closure, redeeming the rewards before that happens is usually worth the effort. A single small purchase — even a $1 transaction — can reset the inactivity clock and keep your account open long enough to use or transfer your rewards.
The difference between issuer closure and closing it yourself
Closing a credit card yourself has nearly the same effect on your credit score as the issuer closing it for inactivity. Either way, your available credit decreases and your utilization ratio rises. The main difference is timing and control: when you close it, you choose when; when the issuer closes it, you lose the account without warning.
There is one small advantage to closing the card yourself: you can do it strategically. If you know you're about to explore for a mortgage or car loan, closing a card right before that process can hurt your score at the worst possible time. If you close it months earlier, your score has time to recover before the lender pulls your credit report. But if the issuer closes it unexpectedly, you have no control over timing.
In practice, most people should keep unused cards open rather than close them, because the score impact is the same but an open account preserves available credit. The exception is a card with an annual fee — if you're not using it and don't want to pay the fee, closing it makes sense, and the score damage is worth avoiding the annual cost.
How to keep a card active without using it regularly
The simplest way to prevent closure is to use the card occasionally — roughly every three to six months. This doesn't mean large purchases or regular spending. A single small transaction every few months is enough. Many people set up a small recurring charge, like a streaming service or a phone bill, to the card and pay it off automatically each month. This keeps the account active without requiring any thought.
Another option is to use the card for a planned purchase every few months and pay the balance when ready. This satisfies the issuer's activity requirement and keeps the account open. The key is consistency: one transaction every six months is better than three transactions in one month followed by six months of silence.
If you have multiple cards you're not using, prioritize keeping the oldest ones active. Older accounts help your credit score more than newer ones, so if you have to let one card go inactive, let it be the newest card. The oldest card is worth more to your credit profile in the long run.
What happens to your account history after closure
When a card account closes, the account history doesn't disappear when ready. It stays on your credit report for up to seven years, even after closure. During that time, the account shows as "closed" or "closed by issuer," which some lenders view negatively. However, the account still counts toward your credit history length, which is another factor in your credit score.
After seven years, the closed account falls off your credit report entirely. At that point, it no longer affects your score. But for those seven years, it remains visible to anyone who pulls your credit report, including lenders, landlords, and employers who have your permission to check.
The account history is actually useful during those seven years, even though the account is closed. Lenders can see that you had a long-standing account with a good payment history, which demonstrates credit responsibility. The closure itself is a minor negative, but the history is a positive. This is why closing old accounts with good payment histories is generally not recommended — the history is more valuable than the small negative mark from closure.
Annual fees and deciding whether to keep the card
If your unused card has an annual fee, the decision becomes clearer: you're paying money for an account you don't use. In this case, closing the card makes sense, and the credit score impact is a reasonable trade-off for avoiding the fee. Most annual fees range from $95 to $450 or more, so paying that fee year after year for an inactive account is wasteful.
If the card has no annual fee, there's almost no reason to close it. The only cost of keeping it open is the small risk that the issuer will close it without warning, but that's a minor inconvenience compared to the credit score benefit of maintaining available credit. A no-fee card that you never use is essentially free credit insurance.
Some cards offer fee waivers or reductions if you call the issuer and ask. If you have a card with an annual fee that you like but don't use often, it's worth calling to ask whether the issuer will waive or reduce the fee. Many issuers will do this to keep long-standing customers, particularly if you have a good payment history.
Frequently Asked Questions
Will my credit score drop if I stop using a credit card?
Not when ready, but it will drop if the issuer closes the account due to inactivity. The drop occurs because your available credit decreases, raising your utilization ratio. Drops of 10 to 50 points are typical, though the exact amount depends on how much available credit you lose.
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 by card issuer and card type. Check your card agreement or call the issuer to ask their specific inactivity policy. A single small transaction every few months is usually enough to keep the account open.
Do I lose my rewards points if I don't use the card?
Possibly. Many issuers expire rewards after 12 months of inactivity or after a set number of years — typically three to five years. Some premium cards don't expire rewards at all. Check your card agreement for the specific expiration policy, and redeem or transfer your rewards before they expire.
Is it better to close an unused card or leave it open?
Leaving it open is usually better if there's no annual fee. An open account preserves your available credit, which helps your credit score. Closing it has the same score impact as the issuer closing it for inactivity, so you gain nothing by closing it yourself unless you're avoiding an annual fee.
Can I reopen a card after the issuer closes it for inactivity?
Reopening a closed account is difficult and depends on the issuer's policy. Some issuers will reopen an account if you call within a certain timeframe, but others won't. It's easier to prevent closure by using the card occasionally than to try to reopen it after closure.