Unused Credit Card: What Happens When You Don’t Use It

When you have a unused credit card, a credit line issued by a bank that you’re not actively using for purchases or payments. Also known as inactive credit card, it’s not harmless just because you’re not swiping it. Many people keep these cards around as backups, thinking they’re doing the right thing. But if you never use it, the bank might close it. And that can mess with your credit score, a three-digit number lenders use to judge how risky you are to lend money to. It’s not just about paying on time—it’s also about how much of your total credit you’re using.

Here’s the thing: your credit utilization, the percentage of your total available credit that you’re actually using is a big part of your score. If you have $10,000 in credit across two cards and only use $1,000, your utilization is 10%. Great. But if the bank shuts down one card—say, the one you never used—your total credit drops to $5,000. Now your $1,000 usage jumps to 20%. That’s a hit. Even worse, if the card was your oldest, closing it shortens your credit history. And that’s another reason your score drops. You didn’t miss a payment. You didn’t overspend. You just didn’t use it. And that’s enough.

Some banks charge annual fees. If you’re not using the card, you’re paying for nothing. Others might send you a notice: "We haven’t seen activity in 12 months. We may close this account." They’re not being mean. They’re making money off usage. If you’re not spending, you’re not earning them interest or fees. They’ll cut you loose. And you lose the benefit—like travel rewards, cash back, or purchase protection—without even realizing it was there.

What should you do? Use it. Not for big purchases. Just for a coffee, a gas fill-up, or a monthly subscription. Pay it off in full every month. That’s it. Keep the account open. Keep the credit line active. Keep your utilization low. And yes, even if you hate the card, keep it alive. It’s not about loyalty to the bank. It’s about protecting your own financial health.

There’s no magic trick. No secret hack. Just simple, consistent behavior. The posts below show real cases—people who lost credit score points because they canceled an old card, others who got hit with surprise fees, and a few who turned unused cards into quiet wealth builders. You’ll see what works, what doesn’t, and how to avoid the traps most people don’t even know exist.