Your card stays open and active, but inactivity can trigger account closure or reduced benefits
If you stop using a credit card, the account does not automatically close. Your issuer keeps it open as long as you pay the annual fee (if there is one) and the account remains in good standing. However, most card issuers have inactivity policies that allow them to close accounts after a period of non-use — typically 6 to 12 months, though this varies by bank. When an issuer closes an inactive account, it appears on your credit report as "closed by issuer," which can lower your credit score because it reduces your available credit and changes your credit mix.
The real cost of not using a card is often invisible until you need it. Rewards programs expire or reset. Annual fees keep charging. Your credit utilization ratio — the amount of credit you use divided by your total available credit — improves on paper, but the account itself becomes a liability rather than an asset in your credit profile.
Key Takeaways
- Card issuers can close inactive accounts after 6 to 12 months of non-use, which lowers your credit score by reducing available credit.
- Annual fees continue to charge even if you never swipe the card, so a card with a yearly cost becomes a drain on cash flow.
- Rewards and sign-up bonuses expire or reset if the card sits unused, meaning you lose the benefit you may have earned.
- Keeping a card active with small, regular purchases (and paying the balance in full) preserves the account and maintains your credit profile without adding debt.
How inactivity affects your credit score
When an issuer closes an account due to inactivity, your credit score typically drops. The damage comes from two directions: your available credit shrinks (if you had a $5,000 limit and the card closes, you lose that $5,000 from your total available credit), and your credit mix changes. Credit scoring models reward you for managing different types of credit — cards, loans, retail accounts. Losing an account type can hurt your score, though the effect is usually smaller than missing a payment.
The score drop is temporary. Over time, as you build new credit history and the closed account ages, the impact fades. But if you are planning to explore for a mortgage, car loan, or another form of credit in the next 6 to 12 months, an account closure can cost you a higher interest rate or a smaller loan amount.
One exception: if the card has a zero balance and you have other active accounts, the damage is usually modest. If the card carries a balance when it closes, the issuer may report it as delinquent or charge-off, which is far more damaging.
Annual fees and why they matter
A card with an annual fee charges that fee whether you use the card or not. Premium travel cards, business cards, and some cash-back cards charge $95 to $550 per year. If you are not using the card, that fee is pure cost with no offsetting benefit. Over five years, a $95 annual fee costs $475 in cash out of your account.
Some issuers waive the first-year fee but charge it every year after. Others charge it on the anniversary of account opening. Read your cardholder agreement to know when the fee hits and whether the issuer offers any waiver for inactivity. A few premium cards offer statement credits (for travel, dining, or shopping) that can offset the annual fee if you use them, but those credits are usually lost if you do not use the card.
If you have a card with an annual fee that you are not using, the math is straightforward: close it or use it enough to justify the cost. Keeping it open "just in case" costs you money every single year.
Rewards and sign-up bonuses that expire
Rewards points, miles, and cash-back balances do not expire as long as your account remains open and in good standing. However, if your account closes due to inactivity, most issuers will forfeit any unredeemed rewards you have accumulated. The sign-up bonus you earned when you opened the card is already locked in, but any ongoing rewards you were building disappear.
Some cards also reset their rewards structure or benefits if the account sits unused for a long time. For example, a card that offers 5% cash back on rotating categories may reduce that to 1% if the account has been inactive. Check your cardholder agreement or contact the issuer directly if you are unsure whether your rewards will be affected by non-use.
If you earned a sign-up bonus but have not redeemed it yet, inactivity is a real risk. A $200 bonus in points or miles is worthless if the account closes before you can use it.
When to keep a card open despite not using it
Keep a card open if it has no annual fee and you want to preserve your credit history and available credit. The cost to you is zero, and the benefit to your credit profile is real. A card with a long history and a zero balance is an asset in your credit report.
Keep a card open if you are planning to explore for a mortgage, car loan, or other major credit within the next year. Closing accounts or letting them close due to inactivity can lower your score at exactly the moment you need it to be highest. Lenders look at your credit profile in the weeks before you explore, so account closures in that window have the most impact.
Keep a card open if it offers benefits you use occasionally — lounge access, travel insurance, purchase protection — even if you do not use it for everyday purchases. These benefits have real value and justify keeping the account active.
How to keep a card active without carrying a balance
The safest way to keep a card active is to use it for a small, regular purchase and pay the full balance every month. This could be a subscription service, a monthly utility, or a single grocery trip. The goal is to show the issuer that the account is in use, not to build a balance or pay interest.
Set up automatic payments to pay the full statement balance on the due date. This way, you use the card without the risk of forgetting a payment or carrying debt. The issuer sees activity, your credit history grows, and you pay zero interest.
If you want to keep the card open but do not want to use it at all, contact the issuer and ask about their inactivity policy. Some banks will not close an account if you ask them to keep it open, or they may offer to waive the annual fee if you commit to keeping the account active. It never hurts to ask.
Closing a card on your own terms
If you decide a card is not worth keeping, close it yourself rather than letting the issuer close it for inactivity. When you close an account, you control the timing and can do it when it will have the least impact on your credit score. Ideally, close a card when you have other active accounts and a healthy credit history to absorb the score drop.
Before you close a card, redeem any remaining rewards, pay off any balance, and confirm the account is in good standing. Call the issuer's customer service line, tell them you want to close the account, and ask them to confirm the closure in writing. Some issuers will try to keep you by offering a waived annual fee or bonus points — negotiate if the card is worth keeping.
After closure, the account will appear on your credit report as "closed by consumer" for seven years. This is less damaging than "closed by issuer," but it still reduces your available credit and may lower your score temporarily.
Frequently Asked Questions
Will my credit score drop if I stop using a card but keep it open?
Not when ready. Your score may actually improve slightly because your credit utilization ratio improves (you are using less of your available credit). The score drops only if the issuer closes the account due to inactivity, which typically happens after 6 to 12 months of non-use.
Can an issuer close my account without telling me?
Yes. Most issuers will send a notice before closing an inactive account, but they are not required to. Check your mail and email regularly, or log into your account online to confirm it is still open. If your account closes without notice, you can contact the issuer and ask them to reopen it, though they are not obligated to do so.
What happens to my rewards if my card is closed?
Unredeemed rewards are usually forfeited when an account closes. Redeem your points or miles before the account closes, or contact the issuer when ready after closure to ask if they will restore your rewards. Some issuers will do this as a courtesy, but it is not may provide.
Is it better to close a card or let it become inactive?
If the card has no annual fee, it is better to keep it open and use it occasionally. If the card has an annual fee you do not want to pay, close it yourself on your own timeline rather than letting the issuer close it for inactivity. Closing on your own terms gives you more control over the impact on your credit.
How often do I need to use a card to keep it active?
Most issuers consider an account active if there is at least one transaction every 6 to 12 months. A single small purchase per year is usually enough, though some issuers are more aggressive and may close accounts after 3 to 6 months of non-use. Check your cardholder agreement or contact the issuer to confirm their specific policy.