How long does a credit card last if you don't use it?

The Lifespan of Inactive Credit Cards

Credit cards are a convenient form of payment that can help you build credit and manage your finances. However, what happens if you stop using your credit card for an extended period of time?

Account Closure

Inactive credit cards can often face closure after six to twelve months of non-use. This is because banks view inactive accounts as a potential risk. If a cardholder is not using the card, the bank may assume that the account is compromised or that the cardholder is no longer in need of the credit.

Bank Policies

The timeframe for account closure is not set in stone. Each issuing bank has its own internal policies that determine how long an account can remain inactive before it is closed. Some banks may be more lenient than others, allowing accounts to remain open for longer periods of time.

Consequences of Account Closure

If your credit card account is closed, it can have several negative consequences:

• Damage to your credit score: Closing a credit card account can reduce your available credit, which can lower your credit utilization ratio. A high credit utilization ratio can negatively impact your credit score.
• Loss of rewards: If you have a rewards credit card, you may lose any accumulated points or cash back when your account is closed.
• Difficulty getting approved for future credit: A closed credit card account can make it more difficult to get approved for new credit in the future.

Maintaining an Open Account

To avoid the negative consequences of account closure, it is important to keep your credit cards active. Even minimal activity, such as making a small purchase or paying off your balance, can help maintain an open account.

Regular Usage vs. Infrequent Usage

It is important to note that regular usage is more effective than infrequent usage in maintaining an open account. If you only use your credit card occasionally, the bank may still consider the account inactive and close it after a period of time.

Conclusion

Inactive credit cards can often face closure after six to twelve months of non-use. However, the timeframe for account closure varies depending on the issuing bank’s policies. To avoid the negative consequences of account closure, it is important to keep your credit cards active by using them regularly or making occasional purchases.