Inactive Credit Cards: How Not Using Your Card Can Lower Your Credit Score
Not using your credit card for an extended period may seem harmless, but it can negatively impact your credit score.
It’s not uncommon for people to stop using a credit card for months. But letting your card sit idle for too long can quietly impact your credit score — sometimes in ways you may not expect.
Before understanding how inactivity can affect your score, it’s important to know what factors contribute to it:
Repayment history: Timely repayments have the biggest influence on your score.
Credit utilisation: This is the ratio of the credit you’re using to the total available credit.
Length of credit history: The longer your credit history, the better it is for your score.
Credit mix: A balanced mix of secured (such as home loans) and unsecured credit (like credit cards) is favourable.
New credit inquiries: Applying for several new credit lines within a short time can negatively affect your score.
What Happens When You Don’t Use Your Credit Card?
Credit Utilisation Ratio
Keeping your card unused can keep your utilisation ratio low — good for your score. However, if the issuer lowers your credit limit or closes the card due to inactivity, your total available credit shrinks. This can cause your utilisation ratio to spike, pulling your credit score down.
Risk Of Account Closure
Issuers often close credit cards after prolonged inactivity. This can hurt your score by reducing your average credit age and lowering your available credit, which again impacts your utilisation ratio.
Payment History
Since payment history accounts for a major chunk of your credit score, not using your card means there are no regular payments being reported — missing out on a key opportunity to strengthen your credit profile.
What Should You Do?
Use the card periodically: Make small purchases every few months and repay them promptly.
Automate usage: Consider linking the card to a small recurring bill or subscription.
Monitor for inactivity clauses: Some cards may come with inactivity or annual fees. Keep an eye on the terms.
Keeping a credit card dormant may appear harmless, but it could quietly chip away at your credit score. A better approach is to use it sparingly but consistently, and always pay on time.
