The card stays inactive, but the account still opens
If you receive a credit card in the mail and never activate it, the card itself remains unusable — you cannot swipe it, insert it, or use it online. However, the credit card account has already opened. The issuer has already pulled your credit report, created an account record, and assigned you a credit limit. These things happen when you're approved, not when you activate the card.
The card will not close automatically just because you do not use it. Most issuers keep inactive accounts open indefinitely, though some will close accounts after 12 to 24 months of no activity. The exact timeline depends on the card issuer's policy, which you can find in the cardholder agreement that came with the card or on the issuer's website.
Key Takeaways
- An inactive credit card account still counts as an open account on your credit report, which affects your credit utilization ratio and average account age.
- Most card issuers will not close an inactive account for at least 12 months, and many keep them open indefinitely as long as there is no fraud.
- You will not be charged an annual fee on most cards if you never activate them, but some premium cards charge the fee once the account opens.
- An inactive card takes up one of your available credit lines, which may matter if you are trying to open new accounts or if you have a limited number of cards you want to manage.
- If you decide later that you want to use the card, you can activate it at any time by calling the number on the back or using the issuer's app or website.
How an inactive account affects your credit score
An inactive credit card account still appears on your credit report as an open account. This affects two of the factors that make up your credit score: credit utilization and average account age.
Credit utilization is the percentage of your total available credit that you are currently using. If you have a $5,000 limit on an inactive card and a $3,000 balance on another card, your total available credit is $8,000 and your utilization is 37.5 percent. An inactive card with a zero balance actually helps your utilization ratio by increasing the denominator without adding to the numerator. This is one reason some people keep old cards open even if they do not use them.
Average account age is the average of how long all your credit accounts have been open. A newer inactive account pulls down your average age slightly, but over time it becomes one of your older accounts and helps your score. Closing the account would remove it from the calculation entirely, which can lower your score if it was one of your older accounts.
When the issuer will close an inactive account
Card issuers have different policies about inactive accounts. Some will close an account after 12 months of no activity. Others wait 24 months or longer. A few issuers, particularly those offering premium cards with high annual fees, may close accounts sooner if the cardholder is not using the card and not paying the annual fee.
You will usually receive a notice before the account closes, though the notice may arrive by mail and be easy to miss. If you want to keep the account open, you can make a small purchase and pay it off to reset the inactivity clock. You do not need to use the card regularly — even one transaction per year is usually enough to keep most accounts active.
If the account does close due to inactivity, it will remain on your credit report for up to seven years as a closed account. This is different from closing the account yourself, but the impact on your credit score is similar: you lose the available credit and the account stops aging in your favor.
Annual fees on cards you never activate
Most standard credit cards have no annual fee, so you will not be charged anything for an inactive account. However, some premium cards charge an annual fee as soon as the account opens, not when you activate the card.
If you received a premium card with an annual fee and never activated it, check your billing statement or log into your account online to see whether the fee has been charged. If it has, you can call the issuer and request a refund, particularly if you never activated the card. Many issuers will refund the first annual fee if you ask within 30 to 60 days of the charge.
If you decide you do not want the card, you can close the account to stop future annual fees. However, closing the account will affect your credit score in the short term by reducing your available credit and lowering your average account age.
Whether to activate a card you are not sure about
If you are unsure whether you want to use a card, you do not have to activate it immediately. Leaving it inactive gives you time to think about whether the rewards, benefits, or terms match your spending habits. You can activate it later if you change your mind.
The main reason to activate sooner rather than later is to start earning rewards or to take advantage of a sign-up bonus if the card has one. Most sign-up bonuses have a time limit — often 90 days from account opening — and you must activate and meet the spending requirement within that window to earn the bonus. If you never activate the card, you will not earn the bonus.
If there is no sign-up bonus or if the bonus deadline has already passed, there is no urgency to activate. You can activate the card whenever you decide to use it, as long as the account is still open.
How to activate the card if you decide to use it later
Activating a credit card is straightforward. You can activate it in one of three ways: by calling the phone number on the back of the card, by logging into your online account with the issuer and following the activation steps, or by using the issuer's mobile app.
When you call, you will need to provide your Social Security number or the last four digits of your Social Security number, your date of birth, and sometimes the card number itself. The process takes a few minutes. Once activated, the card is ready to use immediately.
If you have lost the card or never received it, you can still activate the account by logging into your online account or calling the issuer. The issuer can reissue the card to your address on file, which usually takes 7 to 10 business days.
Closing an inactive card versus leaving it open
Closing an inactive card removes it from your available credit, which increases your utilization ratio on your other cards. It also removes the account from your credit history, which can lower your average account age. Both of these changes can lower your credit score in the short term.
However, closing the card also stops you from paying any annual fees and removes the account from your credit report after seven years instead of keeping it open indefinitely. If the card has an annual fee and you are certain you will never use it, closing it may make financial sense despite the credit score impact.
If the card has no annual fee, there is usually no financial reason to close it. Keeping it open preserves your available credit and your account age, both of which help your credit score over time.
Frequently Asked Questions
Will an inactive credit card hurt my credit score?
An inactive card with a zero balance actually helps your credit score by increasing your available credit and lowering your utilization ratio. However, if the issuer closes the account due to inactivity, you lose that benefit. The account will remain on your credit report as closed for up to seven years.
Can I activate a credit card months or years after receiving it?
Yes, you can activate a card at any time as long as the account is still open. However, if the card came with a sign-up bonus, that bonus likely has a deadline — usually 90 days from account opening — and you will not earn it if you activate after that deadline has passed.
What if I received a card with an annual fee and never activated it?
Check your billing statement to see if the annual fee has been charged. If it has and you never activated the card, call the issuer and request a refund. Most issuers will refund the first annual fee if you ask within 30 to 60 days. If you do not want the card, you can close the account to stop future fees.
Does an inactive card count against the number of credit cards I can open?
An inactive card does count as an open account on your credit report. Some lenders limit the number of open accounts you can have before they will not approve you for new credit. If you are planning to open several new cards, closing inactive cards you do not want may help you stay under those limits.
How long before a credit card issuer closes an inactive account?
Most issuers close inactive accounts after 12 to 24 months of no activity, though some wait longer or keep accounts open indefinitely. Check your cardholder agreement or contact the issuer directly to learn their specific policy. You can keep an account open by making at least one purchase per year.