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

Not using a credit card for a month often leads to questions about its impact on personal finances. Many individuals wonder if such inactivity might negatively affect their credit standing or the status of their account. Understanding the nuances of credit card usage and inactivity can help alleviate these concerns and guide responsible financial behavior.

Your Credit Score

A single month of credit card inactivity has a minimal negative impact on a credit score. Credit scores are complex calculations based on factors like payment history, credit utilization, credit history length, types of credit, and new credit. Consistent, responsible use primarily builds a strong credit history.

Payment history, a significant portion of a credit score, is unaffected by non-use if other account balances are paid on time. Credit utilization, the amount of credit used compared to the total available, remains stable if no new charges are made and existing balances are paid down. The length of one’s credit history continues to age, which is a positive factor.

Not using a card for a month means no new positive payment activity is recorded, but it does not generate negative marks. If a credit card is an individual’s only active credit line, continuous non-use might mean missing opportunities to build payment history. However, one month of inactivity alone does not cause a noticeable score reduction.

Account Status and Potential Closure

A single month of credit card inactivity is unlikely to trigger immediate account closure, but issuers monitor activity. Banks may close accounts dormant for six months to a year or longer, depending on the issuer. Some may wait two to three years before closure.

Issuers close inactive accounts because they do not generate revenue from transaction fees or interest on unused credit lines. They also manage risk and may reallocate unused credit. The Credit Card Act of 2009 requires 45 days’ notice for major account term changes, but account closures due to inactivity are not subject to this notification.

To prevent account closure due to inactivity, make a small purchase every few months, such as once per quarter. This demonstrates ongoing use. Setting up a small, recurring bill payment on the card can also ensure regular activity without constant manual effort.

Other Practical Implications

Not using a credit card for a month means missing out on certain benefits. If the card offers rewards like cash back, points, or travel miles, you forgo their accumulation. These rewards offer tangible value, and consistent use maximizes their potential.

General-purpose credit cards in the United States do not charge inactivity fees. Such fees were banned for consumer credit cards in 2010 under the CARD Act. However, some financial products, like gift cards or prepaid cards, might still carry dormancy charges. Review a card’s terms and conditions.

Conversely, not using a credit card offers benefits related to security and financial discipline. An inactive card reduces the risk of fraudulent charges. For individuals avoiding debt or managing spending, temporary non-use can be a strategy to maintain financial control and prevent impulse purchases.