We know a lot about using a credit card. But what happens if you don’t use your credit card? That happens more often than you think.

Will the credit card get canceled? Will it damage your credit score? Let’s answer these and other questions on the following. So, keep reading!

Credit cards are made for a purpose: to be used. You can pay your purchases and bills, earn rewards, and more. That’s what it is good for.

So, the issuer will notice if you stop using your credit card. And if it gets unused for a long time, the issuer will take some actions.

They’ll cancel your card if you don’t use your credit card for a long period. Another possible outcome is to get your credit limit reduced.

Stopping using your credit card might seem like a good idea to avoid spending more than you should. But there will be consequences.

So, if there is an old credit card you’re no longer using, you might want to use it just a little bit or cancel your account for good.

As you can see, the issuer will cancel or reduce your credit limit if you don’t use your card. That’s what happens to your credit card!

This can damage your credit score a little. But why does it happen if you’re not missing or delaying payments? Let’s explain this to you.

Your credit score is composed of 5 major factors. One is the ratio between your credit limit and your credit usage. If the limit goes down, your usage goes up.

Another reason for the credit score decrease is your credit history length. The longer you’ve been using a credit line, the better.

So, If you got your credit card canceled, you’ll miss a part of your limit and credit history length. That’s why you should think twice before stopping using it.

Yes! The annual or monthly fees will still get charged even if you don’t use your credit card. But you won’t get charged if your card has no annual fee.

That’s something to be aware of. If you forget about these charges, you might create a debt. This is not good for your finances.

While canceling your credit card is not good for your credit score, paying for something you’re not using is not good for your wallet.

That’s the moment to sit down and do the math. Keeping your account active might be worth it if the credit card has a low maintenance fee.

However, you don’t get any advantage if you’re missing hundreds of dollars with a card you don’t use. You should contact your card issuer to find the best solution.

With a few requirements, you can cancel the credit card if you don’t like what happens if you don’t use it.

You must pay all of your credit card balance, as well as fees and other charges. If you don’t have any debt, you can terminate your account.

Unfortunately, there is no way to avoid the impact on your credit score.

But if you’ve weighed the pros and cons and decided this is the best solution, you can always work your finances to improve your credit score.

So, you’ve decided this credit card is no longer working for you. Now that you know what happens, you can take action to turn this into an opportunity.

There are a few possible outcomes for this situation. The first thing you should do is contact your account manager to explain what’s happening.

The financial institution certainly does not want to miss a client. But they don’t want to keep an inactive account either.

See if you can get a better credit card with the same issuer. Maybe one with more benefits or even one with fewer fees.

If you have another card with the same issuer, you can try to transfer your limit. This will prevent getting your total credit limit reduced.

You can always just keep the card as it is and use it once and a while. Pay attention to fees and see if it’s worth it, and you can avoid the bureaucracy.

If you don’t mind what happens to your credit card or score, just keep it forgotten in your drawer until destiny unfolds.

However, if the card costs you too much and there is no way to turn it into a good credit card, the best outcome is to cancel it. 

It won’t be a critical hit even if it hurts your credit score. You can reestablish your score with responsible use and on-time payments.

To learn more about credit, read our article about having a 650 credit score. Keep improving your financial knowledge!