If you don't use your credit card what happens?

If you don’t use your credit card what happens?

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If you don’t use your credit card, you may be wondering what happens. Does it affect your credit score? Are there any fees or penalties involved? In this article, we will dive deeper into the topic and explore the consequences of not using your credit card.

Effects on Credit Score

Credit utilization ratio: One of the factors that influence your credit score is your credit utilization ratio. This ratio is the amount of credit you are using compared to your total available credit. If you don’t use your credit card, it means you have a low credit utilization ratio, which can have a positive impact on your credit score. Lenders generally prefer to see a lower utilization ratio as it indicates responsible credit management.

Inactivity: However, if you completely stop using your credit card for an extended period, the credit card issuer may consider it inactive. Inactive accounts may be closed by the issuer, which could potentially have a negative impact on your credit score. Closing an account reduces your available credit, which in turn increases your credit utilization ratio. It is advisable to use your credit card occasionally to keep it active.

Fees and Penalties

Inactivity fees: Some credit card issuers may charge inactivity fees if you don’t use your credit card for a certain period. These fees can vary depending on the issuer and the terms of your credit card agreement. It is important to review the terms and conditions of your credit card to understand if inactivity fees apply.

Annual fees: If your credit card has an annual fee, it will typically be charged regardless of whether you use the card or not. Annual fees are common for certain types of credit cards, such as premium rewards cards. If you don’t use your card, you may want to consider whether the benefits and rewards outweigh the annual fee.

Security and Fraud Protection

Monitoring: Using your credit card regularly allows you to monitor your transactions and detect any unauthorized activity promptly. If you don’t use your credit card, you may not notice fraudulent charges until they have already caused significant damage.

Protection: Credit cards offer consumer protection against fraud and unauthorized charges. If you don’t use your credit card, you may miss out on these protections. It is important to review your credit card agreement to understand the specific protections offered by your card issuer.


In conclusion, not using your credit card can have both positive and negative consequences. On one hand, it can help maintain a low credit utilization ratio, which is beneficial for your credit score. On the other hand, it may lead to inactivity fees, potential account closure, and missed security and fraud protection. It is essential to strike a balance by using your credit card occasionally while being mindful of the associated fees and benefits.


– Experian: www.experian.com
– Equifax: www.equifax.com
– TransUnion: www.transunion.com

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