How long can I keep a credit card without using it?

The Sleeping Giant: How Long Can You Let Your Credit Card Idle?

We all have them: credit cards tucked away in wallets, sometimes forgotten until the annual statement arrives. But how long can you safely let a credit card gather dust before it’s deemed inactive and subsequently cancelled? The answer isn’t a hard and fast number, but rather a range influenced by your issuer’s policies and your individual account history.

The short answer is: don’t expect to keep a credit card indefinitely without use. Prolonged inactivity almost always leads to account closure. While the specific timeframe varies significantly between credit card companies, a year of non-use is a common threshold. Issuers are businesses, and inactive accounts represent lost revenue. They don’t profit from transactions or interest payments on dormant cards, making them financially unattractive to maintain.

Think of your credit card as a relationship; it requires nurturing, albeit minimal, to remain healthy. While swiping your card for every purchase isn’t necessary, maintaining a level of activity signals to the issuer that the account is valuable and should remain open.

What constitutes “inactivity”? This isn’t solely about making purchases. Some actions that can help keep your account active include:

• Regularly checking your online statement: Simply logging in to view your account activity signals engagement.
• Making a small, recurring transaction: Setting up a small recurring payment (e.g., a subscription service costing a few dollars) can keep your account active without significantly impacting your spending habits.
• Using your card for occasional, low-value purchases: A purchase once a quarter or even once every six months can often be sufficient. Even buying a cup of coffee once in a while can make a difference.
• Contacting your issuer: If you intend to keep a card inactive for a specific reason, proactively contacting your issuer to explain your situation might prevent automatic closure. However, this isn’t guaranteed to work.

The consequences of account closure:

Beyond losing access to your credit line, closing an inactive account can negatively impact your credit score. Length of credit history is a significant factor in your credit score calculation. Closing an older account, even an inactive one, shortens your credit history, which can lead to a temporary drop in your score. This is especially problematic if you rely on that credit card’s history to bolster your creditworthiness.

The bottom line: While there’s no magical timeframe for credit card inactivity, it’s best to err on the side of caution. Employing small, strategic actions to keep your card active – even minimally – is the best way to ensure its longevity and protect your credit score. Regularly review your credit card statements and, if necessary, take steps to ensure your account remains active. Your credit health will thank you for it.