Your card stays open and you keep paying fees, even if you never use it

If you stop using a credit card but don't close it, the account remains active. You will continue to owe any annual fee the card charges, and that fee will appear on your statement whether you swipe the card or not. The card issuer will keep sending statements, and the account will show up on your credit report. Inactivity alone does not close the account or stop the fees.

The specific consequences depend on whether the card has an annual fee, how long you leave it unused, and what the issuer's policy is for dormant accounts. Some cards will eventually close themselves after a year or more of no activity, while others will stay open indefinitely and keep charging you.

Key Takeaways

  • Annual fees continue to charge even when you don't use the card, and you must pay them or dispute them with the issuer.
  • Closing a card can lower your credit score temporarily because it reduces your total available credit, but leaving it open with a $0 balance does not hurt your score.
  • Some issuers close accounts after 12 to 24 months of no activity, while others keep accounts open indefinitely.
  • If you want to keep the card open without paying annual fees, contact the issuer and ask them to waive the fee or switch you to a no-fee version of the card.

Annual fees keep charging whether you use the card or not

A credit card with an annual fee will charge that fee once per year, typically on your account anniversary or at the start of each billing cycle. The fee appears on your statement and you owe it just as you would owe a purchase. If you don't pay it, it becomes part of your balance and accrues interest.

Cards without annual fees will not charge you for inactivity. If your card has no annual fee and you leave it unused with a $0 balance, you will not owe anything. However, you will still receive statements and the account will remain on your credit report.

If you want to stop paying an annual fee without closing the card, call the issuer's customer service number on the back of your card and ask them to waive the fee. Many issuers will waive it once or twice if you ask, or they may offer to move you to a different card from the same company that has no annual fee.

Inactivity can trigger account closure, but timing varies by issuer

Card issuers have different policies for how long they will keep an inactive account open. Some will close an account after 12 months with no activity, while others wait 24 months or longer. A few issuers never close accounts for inactivity alone. There is no federal rule that sets a specific timeline.

When an issuer closes an account for inactivity, they will send you a notice in the mail before it happens. The account will stop appearing on your credit report after it closes, which can lower your credit score because your total available credit decreases. However, the impact is usually small and temporary.

If you want to keep an account open, use the card at least once every few months, even for a small purchase. A single transaction every quarter is usually enough to keep the account active in the issuer's system.

How an unused card affects your credit score

Leaving a credit card open and unused does not hurt your credit score. In fact, it can help your score because it keeps your available credit high. Credit scoring models look at your credit utilization ratio — the amount you owe divided by your total credit limit. A card with a $0 balance and a high limit lowers this ratio, which is good for your score.

Closing a card, by contrast, can lower your score temporarily. When you close an account, your total available credit shrinks, which raises your utilization ratio. If you close a card with a $5,000 limit and you have $2,000 in debt on other cards, your utilization jumps from 40% to 67%. This dip usually recovers within a few months as you pay down balances or as the closed account ages off your report.

The age of the account also matters. Closing an old card can hurt your score more than closing a new one, because credit scoring models reward a long credit history. If you have had a card for many years, keeping it open — even unused — is better for your score than closing it.

What to do if you want to stop using a card

If you have decided you don't want to use a card anymore, you have three options: keep it open and unused, keep it open and use it occasionally, or close it.

Keep it open and unused: This works best if the card has no annual fee and you don't mind receiving statements. Your score will not suffer, and you keep the available credit. The downside is that the issuer may eventually close it for inactivity.

Keep it open and use it occasionally: Use the card once every few months for a small purchase, then pay off the balance right away. This keeps the account active, prevents the issuer from closing it, and maintains your available credit. It requires minimal effort and has no downside.

Close it: Call the issuer and ask them to close the account. Request written confirmation that the account is closed at your request. Your score may dip temporarily, but it will recover. This is the right choice if the card has an annual fee you don't want to pay and the issuer won't waive it, or if you want to simplify your finances.

How to close a credit card the right way

If you decide to close a card, call the issuer's customer service number on the back of your card. Tell them you want to close the account. They may ask why or offer to waive the annual fee — this is your chance to negotiate if you are on the fence.

Before you close the account, make sure the balance is paid in full. If you have a balance, pay it off first, then call to close. After you close the account, the issuer will send you a confirmation letter. Keep this letter for your records.

After closing, check your credit report a few weeks later to make sure the account shows as closed at your request, not closed by the issuer. You can get a free credit report once per year from annualcreditreport.com, which is the official government site. If the report shows the wrong status, contact the issuer and ask them to correct it.

Frequently Asked Questions

Will my credit score go down if I don't use a credit card?

No. Leaving a card open with a $0 balance does not hurt your score. It actually helps because it keeps your available credit high. Your score only drops if you close the card, because closing it reduces your total available credit.

Can a credit card company close my account if I don't use it?

Yes. Most issuers will close an account after 12 to 24 months of no activity, though some wait longer or never close for inactivity alone. They will send you a notice before closing. To prevent this, use the card at least once every few months.

Do I still have to pay an annual fee if I don't use the card?

Yes, unless you close the account. Annual fees charge once per year regardless of whether you use the card. Call the issuer and ask them to waive the fee or move you to a no-fee card. If they refuse, you can close the account to stop paying.

What happens if I leave a credit card unused for years?

If the card has no annual fee, nothing happens except you keep receiving statements. If it has an annual fee, you will keep owing that fee. The issuer may close the account after a long period of inactivity, usually 12 to 24 months, and will notify you before doing so.

Is it better to close a credit card or leave it open?

Leaving it open is usually better for your credit score, especially if the card is old or has no annual fee. Closing it can lower your score temporarily. Close only if the card has an annual fee the issuer won't waive, or if you want to simplify your finances.