Will I be charged if I don't use my credit card?

Understanding Credit Card Inactivity Fees

In the past, credit card companies often charged fees for inactivity. This practice was common among both major issuers and smaller credit unions. However, today’s policies vary widely, and it’s crucial to check your card agreement to determine if you may face any inactivity fees.

What is Credit Card Inactivity?

Credit card inactivity refers to a prolonged period of time when you do not use your card for purchases or cash advances. The definition of “inactivity” can vary from card to card, but it typically involves not using the card for a specified number of months or years.

Reasons for Inactivity Fees

In the past, credit card companies justified inactivity fees as a way to recoup the costs associated with maintaining inactive accounts. These costs included the expense of issuing and maintaining the card, as well as the potential loss of revenue due to the cardholder not using it.

Current Policies on Inactivity Fees

Today, many credit card companies have eliminated inactivity fees altogether. However, some issuers may still impose such fees under certain circumstances. For example, a card agreement may state that an inactivity fee will be charged if the card has not been used for a period of 12 or 24 consecutive months.

How to Avoid Inactivity Fees

If you are concerned about being charged an inactivity fee, there are several steps you can take:

• Review your card agreement: The most important step is to carefully review your credit card agreement. This document will clearly state whether or not your card is subject to an inactivity fee and, if so, under what conditions.
• Use your card regularly: The easiest way to avoid an inactivity fee is to use your card for purchases or cash advances on a regular basis. Even small purchases can help to keep your account active.
• Set reminders: If you are forgetful or tend to use your credit card infrequently, consider setting reminders to use your card at least once every few months. You can use a calendar app, sticky notes, or even a text message reminder to yourself.
• Contact your issuer: If you have not used your card for an extended period of time and are concerned about being charged an inactivity fee, contact your credit card issuer directly. They may be willing to waive the fee if you explain your situation.

Conclusion

Understanding credit card inactivity fees is essential for avoiding unnecessary charges. By reviewing your card agreement, using your card regularly, and setting reminders, you can keep your account active and avoid the potential for inactivity fees. If you have any questions or concerns, do not hesitate to contact your credit card issuer for clarification.