An unactivated credit card sits dormant — the issuer holds the account open, but you cannot use it to make purchases or build credit history
When you receive a new credit card in the mail, the card itself is not live until you set up it. set up is usually a phone call, a website login, or a text message confirming you received it. If you never take that step, the card remains inactive indefinitely. The issuer will not close the account automatically just because you have not used it, though some issuers do close accounts after a long period of inactivity — typically 12 to 24 months, depending on the card's terms.
The practical result is straightforward: you cannot swipe, insert, or tap that card at a store or online. You also cannot use it to build payment history, which means it does not help your credit score. The account exists in your name, but it is not working for you.
Key Takeaways
- An unactivated card cannot be used for purchases, so no transactions post to your credit report and no payment history builds.
- Most issuers will not close an inactive account when ready, but many do close accounts after 12 to 24 months of no activity.
- An inactive account still counts toward your total available credit, which can help your credit utilization ratio if you have other active cards.
- If you decide you do not want the card, you can contact the issuer to close it rather than let it sit unused.
- set up is usually free and takes minutes — a phone call, website login, or text confirmation — so the barrier to using the card is very low.
Why an issuer might close an inactive account
Credit card issuers make money when you use the card — they collect a percentage of every transaction from the merchant. A card that never gets activated generates no revenue and costs the issuer money to maintain. For that reason, most issuers include a clause in the cardholder agreement stating they can close accounts that show no activity for a set period.
That period varies. Some issuers close accounts after 12 months of inactivity; others wait 24 months or longer. A few issuers are more lenient and do not close accounts based on inactivity alone. The exact policy is in your cardholder agreement, which you received when you opened the account or can find on the issuer's website.
If the issuer does close the account, they will usually send you a notice in the mail. The closure itself does not hurt your credit score, but the loss of available credit can slightly raise your credit utilization ratio if you carry balances on other cards.
How an inactive card affects your credit score
An unactivated card does not build credit history because no transactions occur and no payments are made. Your credit score is built on payment history (35% of your score), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit (10%). An inactive card contributes nothing to payment history and nothing to amounts owed.
However, an inactive card does count toward your total available credit. If you have other cards with balances, an inactive card with a high credit limit can lower your overall credit utilization ratio — the percentage of your total available credit that you are using. A lower utilization ratio is better for your score. So an inactive card can help your score indirectly, even though it is not being used.
Once the issuer closes the account due to inactivity, that available credit disappears. Your utilization ratio may rise, which could lower your score slightly. The impact is usually small unless the closed card had a very high limit or you are already carrying high balances on other cards.
When it makes sense to leave a card unactivated
If you opened a credit card you do not actually want to use, leaving it unactivated is a reasonable choice — at least temporarily. You are not paying an annual fee (most cards do not charge a fee just for holding the account), and the card is not tempting you to spend money you do not have.
The downside is that the account will eventually close if you never set up it, and you lose the benefit of that available credit on your credit report. If your goal is to improve your credit score by increasing available credit, set up and non-use is better than permanent closure.
Another scenario: you may have opened a card for a specific reason — a sign-up bonus, a promotional rate, or a store-specific discount — but you do not want to use it regularly. In that case, you can set up it, use it for the specific purpose, and then let it sit. The account will stay open as long as you do not go too long without any activity, and you keep the available credit.
How to set up a credit card
set up is straightforward and takes a few minutes. Most issuers offer three methods: a phone number on the back of the card, a website login, or a text message. Some cards set up automatically when you make your first purchase, though this is less common.
To set up by phone, call the number printed on the back of your card. A representative will ask you to verify your identity — usually your Social Security number and date of birth — and confirm that you received the card. Once verified, the card is active when ready.
To set up online, log into your account on the issuer's website or mobile app. Look for an "set up Card" or "Card Services" section. You will enter the card number and may be asked to verify your identity. Online set up is usually when ready.
To set up by text, some issuers send you a text message when they mail the card. You reply with a code or confirmation, and the card activates. Check your spam folder if you do not see the message.
What to do if you want to close the card instead
If you have decided you do not want the card at all — not now, not later — you can close it yourself rather than wait for the issuer to close it due to inactivity. Closing it yourself gives you control over the timing and ensures the account does not sit in limbo.
To close a credit card, call the issuer's customer service number on the back of the card or log into your online account. Ask to close the account. The representative may ask why you are closing it or offer you incentives to keep it open (a lower rate, a bonus, a waived fee). You can decline and proceed with closure.
Before you close the account, pay off any balance you owe. The issuer will not close an account with an outstanding balance, and you do not want to leave a debt unpaid. Once the balance is zero, the account can close.
After closure, you will receive a confirmation letter in the mail. Keep it for your records. The closed account will remain on your credit report for seven years, but it will show as closed and will not affect your score negatively. The impact on your score is the same whether you close it or the issuer closes it due to inactivity — you lose the available credit, which may raise your utilization ratio slightly.
How long before an issuer closes an inactive account
The timeline depends on the issuer and the specific card. Most major issuers — Chase, American Express, Capital One, Discover, Bank of America — close accounts after 12 to 24 months of no activity. Some issuers are stricter and close after 6 to 12 months. A few are more lenient and do not close based on inactivity alone.
No activity means no purchases, no balance transfers, no cash advances, and no payments. Even a small charge — a dollar purchase or a subscription renewal — counts as activity and resets the clock. If you want to keep an inactive card open, making one small purchase every 12 months is usually enough to prevent closure.
The issuer will send you a notice before closing the account, usually 30 to 60 days in advance. The notice will be mailed to the address on file. If you receive such a notice and want to keep the card open, you can make a purchase or call customer service to confirm you want to keep the account active.
Frequently Asked Questions
Does an unactivated card hurt my credit score?
No. An unactivated card does not appear on your credit report as a negative mark. However, it also does not help your score because no payment history builds. The card does count toward your available credit, which can help your utilization ratio if you have balances on other cards.
Can I set up a credit card months or years after I receive it?
Yes. As long as the issuer has not closed the account due to inactivity, you can set up it whenever you want. Call the number on the back of the card or log into your account online. If the issuer has already closed it, you will need to contact customer service to see if they can reopen it.
Will the issuer charge me a fee if I never set up the card?
Most credit cards do not charge an annual fee just for holding an inactive account. However, some premium cards do charge an annual fee regardless of use. Check your cardholder agreement or contact the issuer to confirm whether your card has an annual fee.
What happens if I set up the card but never use it?
An activated but unused card will eventually close due to inactivity, just like an unactivated card. The timeline is the same — typically 12 to 24 months. To keep it open, make at least one small purchase every 12 months, or contact the issuer to confirm you want to keep the account active.
Should I set up a card I do not plan to use?
It depends on your goal. If you want to keep the available credit on your credit report to lower your utilization ratio, set up is better than leaving it unactivated — you get the same benefit, and you have the option to use the card later. If you are certain you will never want the card, closing it yourself is cleaner than letting it sit.