Financial Education

Things that might happen if you don’t use your credit card!

An unused credit card can impact your finances! Keep reading and discover how! We've explained everything you need to know!


Discover the surprising effects of not using your plastic

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Things that might happen if you don’t use your credit card! Source: AdobeStock

Are you wondering what happens if you don’t use a credit card? Wonder no longer! We are here to help you find out!

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What to expect if you don’t use your credit card?

A credit card can be useful for those who want to make more secure transactions. Also, it can help you build a credit history fast.

Some even offer a reward program, welcome bonuses, or an introductory offer that can benefit some!

However, credit card features sometimes don’t fit your current financial needs anymore! And then, you just stop using it!

So have you ever wondered what happens next? In fact, there will be no big consequence as long as you keep up with your bills.

Further, let’s answer the question: “What happens if you don’t use your credit card?”

1. The issuer might close your card

As you might imagine, not using your credit card will show creditors that maybe, you don’t need this credit card anymore!

Well, companies make money from credit cards. After all, they charge several fees and interest! So if you don’t use it, they’ll lose money at some point.

As a result, they might close your account! And the creditor can do it without giving your notice of the deactivation!

A closed credit card account might not seem like a big deal. Still, it can negatively impact your credit score!

So if the card’s issuer offers you can chance to keep your account open, it might seem like a good deal to you… Just go for it!

2. You might overlook your credit card’s activity

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What to expect if you don’t use your credit card? Discover next! Source: AdobeStock

If you don’t use your credit card, you might not look at your account’s activity regularly!

I know! You might be wondering how this can impact your life… But trust me! It can impact a lot!

After all, if you overlook your card’s activity, you might miss seeing fraudulent activity in the long run! This can highly damage your financial life.

In addition, you might miss any charges and payments accidentally! Which can lead you to spend more money than you could’ve!

3. Your credit score might lower

That is not exciting news! But if an unused credit card will affect your credit score, especially if the issuer closes your account.

Consequently, your credit utilization rate will drop. This means that your total amount of credit available to you has dropped!

The credit utilization rate is 30% of your score! Therefore, it has a high impact on it!

And trust me, if you want to ensure a stable financial life and better products, you will need a higher credit score!

4. You will still have to pay an annual fee

Yes! This happens! Companies charge an annual fee to cardholders to use their credit cards!

So even if you don’t use your credit card, you must pay the annual fee! As a result, you’ll end up paying for a service you don’t use anymore!

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How long can I go without using my credit card?

There is no right answer to that question! The only certain thing is that the company will close your account after inactivity!

So you shouldn’t be concerned if you don’t use your card for a month! However, longer than that, your might have a surprise!

So keep a close eye on your account, especially if you don’t use it for six months or a year!

This way, you can track the activity and ensure it won’t be closed if you don’t want to!

Should I cancel my credit card if I don’t use it?

To decide that, you must analyze some key situations. Also, you must consider your financial life!

For example, consider if the unused credit card is your oldest. The length of your credit is a key factor in your credit score!

Another important aspect is your credit utilization ratio. As said, it is 30% of your credit score. So keep a closer look so it won’t go over 30%!

Lastly, consider if there are no clear benefits that the card might offer you! A reward, cash back, low interest, or welcome bonus!

Think strategically, and you won’t damage your credit score or lose your hard-earned money!

How to keep my credit card active?

Closeup image of a woman holding and choosing credit card to use
Discover the surprising effects of not using your plastic. Source: AdobeStock

If you don’t want your credit card to get closed but also don’t need it anymore, there are some things you can do to keep it active.

For example, you can make occasional purchases with it! Also, you can always check your monthly statements to look for fraudulent activities!

However, be careful not to use it too little! One thing you can do is to keep a single and regular charge on your card!

Thus, you can set an automated charge and pay a single bill every month! You can even use it to pay a subscription, for example.

As a result, you can keep your account active and still won’t spend too little!

Take your time to use your credit card!

As your can note, there is no big consequence of not using your credit card! It won’t highly affect your credit score as long as it stays open!

Still, an inactive account might impact your credit history and finances since the annual fee charge won’t stop coming!

Remember to keep track of your unused account, and don’t forget to pay the reminiscent balance!

This way, you can avoid paying high-interest rates or being a victim of fraud!

Next, learn if a 750 credit score is a good rating! Keep reading and find out!

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750 credit score: is it good?

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About the author  /  Luis Felipe Xavier

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