How Long Can You Not Use a Credit Card Before It Closes?

Credit cards offer convenience and flexibility for everyday purchases and larger transactions. However, these accounts are not meant to remain indefinitely unused. When a credit card account remains dormant for an extended period, the card issuer may decide to close it. Understanding account dormancy is important for cardholders, as it relates to the issuer’s operational considerations.

Understanding Inactivity Policies

There is no universal timeframe for how long a credit card can remain unused before an issuer might close the account. The period of inactivity triggering closure varies significantly among different credit card companies. Some issuers may consider an account inactive after a few months, while others might allow it to remain open for 12 months, 18-24 months, or even two to three years without activity. Credit card issuers reserve the right to close accounts at their discretion at any time.

These inactivity policies can change and are often not explicitly published or available to cardholders. While some issuers may provide a notification before closing an account due to inactivity, many are not obligated to do so and may close the account without prior warning. This lack of a standard notice period means cardholders might only discover closure when attempting to use the card or reviewing statements.

Reasons for Account Closure Due to Inactivity

Credit card issuers close inactive accounts for business reasons. Maintaining dormant accounts incurs costs for the issuer, including expenses related to regulatory compliance, reporting obligations, and customer service interactions, regardless of account activity. An inactive card does not generate income for the issuer through transaction fees, also known as “swipe fees,” nor from interest charges if no balance is carried.

Issuers also manage risk by closing unused accounts. An inactive account could pose a liability if the cardholder faces financial difficulties and accumulates significant debt on a previously dormant card. Furthermore, a sudden activation of a long-dormant card could raise fraud concerns, leading to administrative costs for investigation. Credit card companies also allocate their available credit to customers who actively use their services.

Preventing Account Closure

Cardholders can take steps to prevent their credit card accounts from being closed due to inactivity. One effective method is to make small, occasional purchases using the card, such as buying coffee or gasoline. Even minimal activity is often sufficient to register as usage and signal to the issuer that the card is still in use. Simply carrying a balance without new purchases will not prevent closure; transaction activity is what issuers look for.

Another practical strategy involves setting up a small recurring bill payment on the card, such as for a streaming service or subscription. This ensures regular, automated activity without manual effort. Using each card periodically, perhaps once a quarter or at least every six months, can help maintain active status and avoid closure. If concerns remain, contacting the credit card issuer directly to inquire about their specific inactivity policy can provide clarity.

Managing a Closed Account

If a credit card account is closed due to inactivity, certain consequences follow. Any outstanding balance remains due and payable by the cardholder. The issuer will continue to send statements until the balance is cleared. Once closed, no new charges can be made on that credit card.

If a cardholder wishes to reinstate a closed account, they may contact the issuer promptly. Reinstatement is not guaranteed and might involve a credit check. Any accumulated rewards or card benefits may also be lost upon closure.