Not using a credit card does not hurt your score directly, but inactivity can trigger account closure, which does hurt it
An unused card sitting in a drawer will not damage your credit on its own. Credit bureaus do not penalize you for having available credit you do not use. The problem arrives when your card issuer closes the account due to inactivity — and most issuers will close accounts after 6 to 12 months of no activity. Once closed, that account affects your score in two ways: your total available credit shrinks, and a closed account stays on your report for years.
The real risk is not the card itself but what happens when the issuer decides to shut it down. Understanding when and why that happens, and what you can do about it, is the difference between a card that quietly helps your score and one that quietly hurts it.
Key Takeaways
- Card issuers typically close accounts after 6 to 12 months of no activity, and this closure lowers your credit score by reducing your available credit.
- Your credit utilization ratio — the percentage of your total credit limit you actually use — is a major scoring factor, so losing available credit raises this ratio even if you spend the same amount.
- A closed account remains on your credit report for up to 10 years, continuing to affect your score during that time.
- Making one small purchase every few months, or setting up an automatic payment for a recurring bill, keeps the account active without requiring you to carry a balance.
- Closing a card yourself has the same negative effect as an issuer closing it, so inactivity is preferable to voluntary closure if you want to preserve your score.
Why card issuers close inactive accounts
Card companies close dormant accounts because inactive cardholders represent a cost with no revenue. The issuer pays for fraud monitoring, customer service, and account administration whether you use the card or not. If you have not made a purchase in 6 to 12 months — the window varies by issuer — they close the account to reduce that cost.
Some issuers send a notice before closing; others do not. A few will reopen the account if you call and ask, but most will not. Once closed, you cannot use that card again, and the account shows as "closed by issuer" on your credit report.
How account closure affects your credit score
Closing an account reduces your available credit, which is the total credit limit across all your cards. If you have three cards with $5,000 limits each and one is closed, your available credit drops from $15,000 to $10,000. Your credit utilization ratio — the percentage of available credit you are actually using — then rises automatically, even though you have not spent any more money.
Credit utilization makes up roughly 30 percent of your credit score. If you normally use $3,000 of your $15,000 available credit (20 percent utilization), closing one card raises that to $3,000 of $10,000 (30 percent utilization). That 10-point jump in utilization can lower your score by 10 to 50 points, depending on how close you already are to maxing out your cards.
The closed account itself also stays on your report. A closed account in good standing (no missed payments) is less damaging than an active one, but it still counts toward your credit history length and can be factored into scoring models. After 10 years, the account falls off your report entirely.
The difference between account closure and account inactivity
If you never use the card but the issuer never closes it, your score is not harmed by the card's existence. The account still counts as available credit, and your utilization ratio stays lower. The card simply sits there, helping you.
The moment the issuer closes it, that benefit disappears. You lose the available credit, your utilization ratio rises, and the closed account appears on your report. This is why keeping an inactive card open is better for your score than letting it be closed — and much better than closing it yourself.
Closing a card yourself has the same negative effect as an issuer closing it. Both reduce your available credit and both show up on your report. The only difference is that you control the timing when you close it yourself.
How to keep a card active without carrying a balance
The simplest way to prevent closure is to use the card at least once every 6 months. This does not mean spending money you would not otherwise spend. It means charging something small — a coffee, a tank of gas, a subscription — and paying it off in full when the bill arrives.
An even easier approach is to set up one recurring bill on the card: a streaming service, a gym membership, or an insurance payment. Charge it to the card, then set up automatic payment from your bank account to pay the card in full each month. The card stays active, you never carry a balance, and you do not have to think about it.
Some people put a small recurring charge on each unused card — a $5 monthly subscription, for example — and automate the payment. This keeps all cards active and costs almost nothing. The key is that the issuer sees activity, not that you are spending significant money.
When keeping an unused card makes sense
A card with no annual fee is almost always worth keeping open, even if you never use it. The available credit helps your utilization ratio, and the account history helps your credit age. The only cost is the small effort of using it once every six months.
A card with an annual fee is a different calculation. If the fee is $95 or more and you do not use the card, closing it might be the right choice — but understand that closing it will lower your score. Some people close a high-fee card and accept the short-term score drop because they do not want to pay the annual fee. That is a valid choice, but it should be intentional, not accidental.
Cards that offer rewards on categories you do not spend in are also candidates for closure. If you have a restaurant rewards card but never eat out, the card is not earning you anything. Keeping it open for the credit history is an option, but only if there is no annual fee.
What happens if your card is already closed
If an issuer has already closed your account, you cannot reopen it with most companies. Some will reopen it if you call within a few months and ask, but do not count on it. Your best move is to focus on the cards you still have open and keep them active.
The closed account will remain on your report for up to 10 years. During that time, it will continue to reduce your available credit and raise your utilization ratio. Once it falls off, your score will improve slightly because your available credit will increase again.
In the meantime, if you have other cards, use them responsibly and keep your utilization low. This will offset some of the damage from the closed account. If the closed account was in good standing (no missed payments), the damage is less severe than if it had been delinquent.
Frequently Asked Questions
Will my credit score go up if I close an unused card?
No. Closing a card lowers your score by reducing your available credit and raising your utilization ratio. Keeping the card open, even unused, is better for your score than closing it. The only exception is if the card has a high annual fee and you have decided the fee is not worth paying.
How often do I need to use a card to keep it open?
Most issuers close accounts after 6 to 12 months of no activity. Using the card at least once every six months — even for a small purchase — is usually enough to keep it open. Setting up a recurring charge and automatic payment is the easiest way to stay within that window.
Can I ask my card issuer not to close my account?
You can call and ask, but most issuers will not make exceptions. Your best option is to use the card occasionally so the question does not come up. If the account is already closed, some issuers will reopen it if you ask within a few months, but this is not may provide.
Does a closed account hurt my credit score forever?
A closed account stays on your report for up to 10 years and continues to affect your score during that time by reducing your available credit. Once it falls off, your available credit increases and your score will improve slightly. The damage is not permanent, but it lasts a long time.
What if I have multiple unused cards — should I close some?
Keep all cards with no annual fee open and use them occasionally. Close only cards with high annual fees if you have decided the fee is not worth paying. Closing multiple cards at once will lower your score more than closing them gradually, so if you must close cards, space them out over several months.