What Happens If I Don’t Use My Credit Card for a Month?

Not using a credit card for a month may seem like a simple choice, but it can carry implications for your finances. While a single month of inactivity is unlikely to cause immediate issues, understanding the effects of prolonged non-use is important. These effects can range from impacts on your credit score to potential account changes initiated by your card issuer.

Impact on Your Credit Score

Credit card inactivity can impact your credit score. Your credit utilization ratio is a significant factor, accounting for about 30% of your score. Maintaining low credit utilization, ideally below 10%, is beneficial. While not using a card results in a zero balance, its closure due to inactivity would reduce your total available credit. This could increase your overall utilization ratio if you carry balances on other cards.

The length of your credit history also plays a role in your credit score, making up about 15-20% of your score. Older accounts with responsible use are viewed favorably. If an older, unused credit card is eventually closed by the issuer, it could shorten the average age of your accounts, which might negatively affect this component of your score.

Your credit mix contributes about 10% to your score. Lenders prefer to see responsible handling of different credit types, like revolving accounts and installment loans. If an inactive credit card is your only revolving account, or a significant one, its closure could alter your credit mix, though this factor usually has a smaller impact than utilization or history length.

Inactivity Fees and Card Closure

While a month of inactivity is generally harmless, prolonged inactivity can lead to issuer actions. Inactivity fees on credit cards became uncommon after the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. This law prohibits issuers from charging inactivity fees. This protection applies primarily to traditional credit cards, not gift or prepaid cards, which may still have inactivity fees if disclosed.

Account closure by the issuer is a more common consequence of prolonged inactivity. Issuers may close accounts unused for 6 to 24 months, though some allow up to three years. Issuers close accounts to manage risk and reduce administrative burdens, as inactive accounts don’t generate revenue from fees or interest. Issuers are not required to provide advance notice before closing an account due to inactivity, even though the CARD Act mandates notice for other changes.

Managing Unused Credit Cards

Proactively managing unused credit cards can help maintain a positive credit profile. To prevent account closure, make small, infrequent purchases, like a streaming service subscription, and pay the balance in full. Doing this every few months, or at least annually, signals to the issuer that the account is active.

Periodically review statements for all credit accounts, even rarely used ones, to monitor for unauthorized activity or unexpected fees. While keeping accounts open is often beneficial, closing an unused card may be appropriate if it carries a high annual fee or presents a temptation for overspending. Before closing any account, particularly an older one with a high credit limit, consider the potential impact on your credit utilization and average account age.