Will my credit score increase if I don't use my credit card?

The Myth of the Unused Credit Card: Why Inactivity Won’t Boost Your Credit

Many believe that leaving their credit cards untouched, pristine in their wallets, is a surefire way to boost their credit score. This is a misconception. While responsible credit card usage is crucial for a healthy credit report, simply not using a card doesn’t actively improve your score. The truth is a bit more nuanced.

A key factor influencing your credit score is your credit utilization ratio. This is the percentage of your available credit that you’re currently using. Keeping this ratio low—ideally under 30%, and even lower is better—demonstrates responsible credit management and positively impacts your score. However, a zero utilization ratio, achieved by not using your card at all, doesn’t provide any extra benefit compared to a low but active utilization.

Imagine having a credit limit of $1,000. Charging $100 and paying it off in full reflects a 10% utilization ratio, which is excellent. Not using the card at all results in a 0% ratio. While both are good, the scoring models don’t reward the 0% any more than the low, active usage. In fact, having no recent activity on a card can sometimes lead to the issuer closing the account, which can negatively impact your score by reducing your overall available credit and shortening your credit history length.

The real driver of credit score improvement is consistent, responsible payment behavior. Making regular, on-time payments, even on small balances, is far more impactful than infrequent card use or even complete inactivity. These consistent positive payment patterns demonstrate your creditworthiness and build a strong track record.

So, instead of letting your credit card gather dust, use it strategically. Make small purchases and pay them off in full and on time each month. This keeps your utilization low, demonstrates responsible credit management, and prevents your account from becoming inactive. Remember, the key to a healthy credit score isn’t avoidance, but responsible and consistent usage. Focus on building a history of reliable payments, and you’ll be well on your way to a strong credit standing.