Not using a credit card does not damage your credit score, but it can affect how lenders see you over time
A credit card sitting unused in a drawer will not hurt your credit. Your score does not go down because you are not charging purchases to it. The three major credit bureaus — Equifax, Experian, and TransUnion — do not penalise inactivity. What matters to your score is what you do with the cards you have open: whether you pay on time, how much of your credit limit you use, and how long you have held the account.
The real risk of not using a card is different. Card issuers can close inactive accounts without warning, and a closed account changes your credit profile in ways that can lower your score. A card that sits unused for 6 to 12 months is at risk of closure, though the exact timeline varies by issuer. When an issuer closes an account, the available credit you had disappears from your profile, which can raise your credit utilisation ratio — the percentage of your total credit limit that you are actually using — and that can lower your score.
Key Takeaways
- Not using a credit card does not lower your score on its own; inactivity is not tracked or scored by credit bureaus.
- Card issuers may close accounts that show no activity for 6 to 12 months, and closure removes available credit from your profile.
- When available credit drops, your credit utilisation ratio can rise, which may lower your score even if you pay other cards on time.
- A small purchase every few months — even a dollar — is enough to keep most cards active and prevent closure.
- Closing a card yourself has the same effect on your score as an issuer closing it, so inactivity is often the better choice.
Why issuers close unused accounts
Card companies make money when you use the card. They earn interchange fees from merchants every time you swipe, and they earn interest if you carry a balance. An account with zero activity generates no revenue and costs the issuer money to maintain — they have to pay for fraud monitoring, customer service, and regulatory compliance on an account that is sitting idle.
For that reason, most card agreements include language allowing the issuer to close an account for inactivity. The issuer does not have to notify you in advance. You may open your statement one day and find the account closed. Some issuers send a warning letter first, but many do not. The closure appears on your credit report as an account closed by the issuer, which is different from an account you closed yourself — but both have the same effect on your available credit.
How account closure affects your credit utilisation
Credit utilisation is the amount of revolving credit you are using divided by the total amount available to you. If you have three cards with $5,000 limits each — $15,000 total — and you are carrying a $3,000 balance on one card, your utilisation is 20 percent. That is healthy. Most scoring models reward utilisation below 30 percent.
If one of those cards is closed because you did not use it, your available credit drops to $10,000. The same $3,000 balance now represents 30 percent utilisation instead of 20 percent. Your score may drop by a few points because of that shift, even though you did nothing wrong and made all your payments on time. The impact is usually small — 5 to 10 points — but it is real.
This is why keeping old cards open, even if you do not use them, can help your score. The available credit they provide lowers your overall utilisation ratio. The older the card, the more valuable it is to keep open, because age of accounts is also a scoring factor.
How often you need to use a card to keep it active
You do not need to use a card regularly to prevent closure. Most issuers define inactivity as no activity for 6 to 12 months, though some are stricter. A single small purchase — even $1 at a vending machine — counts as activity. Paying down a balance also counts. Making a payment on a zero balance does not, because there is nothing to pay.
The safest approach is to put one small recurring charge on the card every few months: a subscription service, a gas station fill-up, or a coffee. Charge it, let the statement close, and pay it off in full. This keeps the account active without creating interest charges or requiring you to remember to use it. Some people set a calendar reminder every three months to make a small purchase on each card they want to keep open.
If you have many cards, this becomes tedious. In that case, prioritise keeping the oldest cards active and the ones with the highest credit limits. Those have the most impact on your utilisation ratio and your credit age.
The difference between issuer closure and closing it yourself
If you close a card yourself, the account is marked as closed by the consumer. If the issuer closes it, the account is marked as closed by the issuer. Both appear on your credit report, and both remove the available credit from your profile. The scoring impact is the same.
However, there is a practical difference. When you close a card, you control the timing. You can close it after you have paid off the balance and after you have opened a new card to replace the available credit. When an issuer closes it, you have no warning and no control. For that reason, keeping a card open — even unused — is often better than closing it yourself, as long as there is no annual fee.
If the card has an annual fee and you are not using it, you have a choice: pay the fee to keep the available credit, or close it and accept the small hit to your utilisation ratio. The answer depends on how much available credit you need and how close you are to your desired utilisation percentage.
When not using a card is actually the right choice
Not using a card makes sense if it has an annual fee you do not want to pay, or if you are trying to avoid the temptation to overspend. Closing a card you do not trust yourself with is a valid financial decision, even if it lowers your score slightly. A few points of damage is worth it if it prevents you from running up debt.
It also makes sense to close a card if you have many accounts and managing them is becoming a burden. There is no rule that says you must keep every card open. If you have five cards and only use two, closing three of them simplifies your life. The score impact is usually small, and the peace of mind may be worth it.
The key is to make the decision intentionally, not to let an issuer make it for you. If you decide to keep a card open for the available credit, use it occasionally. If you decide you do not need it, close it on your own terms rather than waiting for the issuer to do it.
Frequently Asked Questions
Will my score go down if I stop using a credit card?
Not from inactivity alone. Your score does not track whether you use a card. The risk is that the issuer closes the account, which removes available credit and can raise your utilisation ratio. That is what lowers the score, not the lack of use itself.
How long can a credit card sit unused before the issuer closes it?
Most issuers close accounts after 6 to 12 months of no activity, but the exact timeline varies. Some are stricter; some are more lenient. Check your card agreement or call the issuer to ask their specific policy. A single small purchase every few months is enough to prevent closure.
Does paying off a credit card balance count as activity?
Yes. Making a payment on an outstanding balance counts as activity and keeps the account active. Paying a zero balance does not count, because there is nothing to pay. To keep a card active, you need to charge something to it, not just pay it.
Is it better to close a card or let it sit unused?
If the card has no annual fee, letting it sit unused is usually better. You keep the available credit, which helps your utilisation ratio. If it has an annual fee, closing it makes more sense unless the available credit is valuable to you. Either way, the score impact is small.
Can I keep a credit card open without using it at all?
Not indefinitely. Most issuers will close an account that shows no activity for 6 to 12 months. To keep it open, make a small purchase every few months — even $1 counts. This keeps the account active without creating debt.