What happens if you dont use your credit card?

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When it comes to credit cards, many people wonder what happens if they don’t use them. Does it affect their credit score? Are there any fees involved? In this article, we will dive deeper into the topic and explore the potential consequences of not using your credit card.

Impact on Credit Score

Credit utilization ratio: One of the factors that affect your credit score is your credit utilization ratio. This ratio is the percentage of your available credit that you are currently using. If you don’t use your credit card at all, your credit utilization ratio will be zero, which can actually have a positive impact on your credit score. However, it’s important to note that having a low credit utilization ratio doesn’t mean you should stop using your credit card altogether.

Inactivity fees: Some credit card issuers may charge inactivity fees if you don’t use your credit card for an extended period of time. These fees can vary depending on the issuer and the terms of your credit card agreement. It’s important to read the terms and conditions of your credit card to understand if there are any potential fees for not using it.

Effect on Credit Limit

Credit limit reduction: If you don’t use your credit card for a long period of time, the credit card issuer may decide to reduce your credit limit or even close your account. This can happen because the issuer wants to minimize their risk or because they believe you no longer need the credit limit. A reduced credit limit can impact your credit utilization ratio and potentially lower your credit score.

Loss of Rewards and Benefits

Rewards programs: Many credit cards offer rewards programs where you earn points, cashback, or other benefits for using your card. If you don’t use your credit card, you won’t be able to take advantage of these rewards programs and may miss out on potential savings or perks.

Insurance and protection: Some credit cards offer insurance coverage and purchase protection for items bought with the card. If you don’t use your credit card, you won’t be able to benefit from these additional protections, which could be valuable in certain situations.

Keeping the Account Active

Periodic usage: To avoid potential negative consequences, it’s generally recommended to use your credit card periodically, even if it’s for small purchases. This keeps the account active and shows the credit card issuer that you are still using and managing your credit responsibly.

Automatic payments: Setting up automatic payments for recurring bills or subscriptions can be a convenient way to ensure regular usage of your credit card without having to actively make purchases. This helps maintain the account’s activity and can prevent any potential negative impacts.


While not using your credit card may have some potential benefits, such as a lower credit utilization ratio, it’s important to be aware of the potential consequences. These can include inactivity fees, credit limit reductions, and the loss of rewards and benefits. To maintain a healthy credit profile, it’s generally recommended to use your credit card periodically and responsibly.


– Bankrate.com
– CreditKarma.com
– Experian.com