Your card stays open, but your credit score may drop
If you stop using a credit card entirely, the card itself doesn't close automatically. Your account remains open and active unless you or the card issuer closes it. However, inactivity can trigger two problems: your credit score may fall, and the issuer may eventually close the account for non-use.
The score drop happens because of something called credit utilization — the percentage of your available credit you're actually using. When you stop using a card, you're using 0% of that limit. This sounds good, but credit scoring models actually reward you for using credit responsibly and then paying it off. A card sitting unused doesn't show that you can manage debt.
More importantly, an unused card still counts toward your total available credit. If you have a $5,000 limit and never touch it, that $5,000 is still part of your credit profile. If you close the card later or the issuer closes it, you lose that available credit, which can raise your utilization ratio on your remaining cards and hurt your score.
Key Takeaways
- An unused card stays open unless you close it or the issuer closes it for inactivity, which typically happens after 6 to 12 months of no activity.
- Your credit score may drop when a card is closed because you lose available credit, which can raise your utilization ratio on other cards.
- Card issuers close inactive accounts to reduce their own costs, and this closure appears on your credit report as a closed account.
- Using your card occasionally — even for a small purchase you pay off immediately — keeps it active and protects your credit score.
- Closing a card yourself has the same score impact as the issuer closing it, so the choice depends on whether you want to keep the account open.
When card issuers close accounts for non-use
Most card issuers will close an account if you don't use it for 6 to 12 months, though the exact timeline varies by issuer. American Express, for example, is known for closing inactive accounts relatively quickly. Other issuers may wait longer. The issuer sends you a notice before closing, usually giving you a chance to use the card to keep it open.
When the issuer closes the account, they report it to the credit bureaus as a closed account. This appears on your credit report and can lower your score because it reduces your total available credit. The account stays on your report for up to 10 years, but its impact on your score fades over time.
The issuer closes inactive accounts because they cost money to maintain. A card you never use generates no interest or fees for them, so keeping it open is a loss. Closing it reduces their costs and their risk.
How inactivity affects your credit score
The damage to your score comes from two directions. First, closing an account (whether you do it or the issuer does) removes available credit from your profile. If you had a $5,000 limit on that card and a $2,000 balance on another card, your utilization was 20%. After the card closes, you have less total credit available, so that same $2,000 balance now represents a higher percentage of your available credit.
Second, an account that's been closed stops showing recent activity. Credit scoring models look at how recently you've used credit responsibly. An old closed account shows less recent behavior than an active account, which can lower your score slightly.
The impact is usually modest — typically a drop of 5 to 10 points — but it's real. If your score is already borderline for a loan or a new card, this drop could matter.
How to keep a card active without using it much
The simplest solution is to use the card occasionally. You don't need to carry a balance or spend much. Charge a small purchase — a coffee, a gas fill-up, a streaming subscription — and pay it off in full when the bill arrives. This shows the issuer that the account is active and shows the credit bureaus that you're using credit responsibly.
Set a calendar reminder once every two or three months to use the card for something small. This keeps the account active and prevents the issuer from closing it. You avoid interest charges by paying the full balance, and you protect your credit score.
Some people set up a small recurring charge — like a subscription service they already pay for — on the card and set up autopay for the full balance each month. This requires almost no effort and keeps the account active indefinitely.
The difference between you closing the card and the issuer closing it
From a credit score perspective, there's almost no difference. Both result in a closed account on your report, both reduce your available credit, and both have roughly the same impact on your score. The main difference is control: if you close the card, you decide when. If the issuer closes it, you don't.
There's one practical reason to close a card yourself rather than let the issuer close it: you avoid the surprise. If you want the account closed, closing it yourself means you're not caught off guard by a notice in the mail. If you want to keep it open, using it occasionally prevents the issuer from making that decision for you.
If you're trying to improve your credit score, keeping the card open and active is usually better than closing it. But if you genuinely don't want the account anymore — because you don't trust yourself with it, or you're trying to simplify your finances — closing it yourself is fine. The score impact is the same either way.
What happens to rewards or cash back on an inactive card
Rewards and cash back don't expire just because you're not using the card. They stay in your account indefinitely in most cases. However, some card issuers do have policies that expire rewards if the account is closed or inactive for a very long time. Check your card's terms to see what applies to you.
If you have accumulated rewards on a card you're not using, you have a few options. You can redeem them before the account closes. You can use the card occasionally to keep it active and redeem rewards later. Or, if the issuer closes the account, contact them to ask about redeeming any remaining rewards — many issuers will honor this request even after closure.
Annual fees and inactive accounts
If your card has an annual fee, inactivity doesn't waive it. You'll still owe the fee each year whether you use the card or not. This is one reason to close a card you're not using: to stop paying a fee for an account you don't benefit from.
If you have a card with an annual fee and you're not using it, your options are to use it enough to justify the fee, downgrade to a version of the card without an annual fee if the issuer offers one, or close the account. Paying a fee for an unused card is money wasted.
Frequently Asked Questions
How long can I leave a credit card unused before the issuer closes it?
Most issuers close accounts after 6 to 12 months of inactivity, but this varies. Some issuers are more aggressive, closing accounts after 6 months. Others wait longer. Check your card's terms or contact the issuer to find out their specific policy. They'll send you a notice before closing, so you'll have a chance to use the card to keep it open.
Will my credit score recover if an inactive card is closed?
Yes, but it takes time. The impact of a closed account fades over months and years. The account stays on your report for up to 10 years, but its effect on your score decreases as it gets older. Opening new accounts and using them responsibly will help your score recover faster than waiting alone.
Can I reopen a card after the issuer closes it?
It depends on the issuer and how long ago they closed it. Some issuers will reopen a recently closed account if you ask. Others won't. Your best option is to contact the issuer directly and ask. If they won't reopen it, you can always apply for a new card from them later.
Does using a card for a small purchase and paying it off right away help my credit score?
Yes. Using the card shows the issuer the account is active and shows the credit bureaus that you're using credit responsibly. Paying it off in full shows you can manage debt without carrying a balance. This is good for your score and costs you nothing in interest.
What's the best reason to close a credit card I'm not using?
The main reason is an annual fee you don't want to pay. If the card has no annual fee, keeping it open and using it occasionally is usually better for your credit score. If you're worried about overspending or managing too many accounts, closing it is a reasonable choice — just know the score impact will be modest and temporary.