What Can Happen If You Don’t Use A Credit Card For A Year Or More?

June 18, 2024 By: Anna C. - CreditMonarch Online Writer0 comments

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Credit cards are used by many people almost every day. If you’re someone who uses a credit card frequently, you may end up using it multiple times a week to buy things like groceries and gas. There may come a point where you stop using one of your credit cards. It could be that your other credit cards have a better rewards program. Perhaps you are intentionally trying to pay for additional expenses with cash. You need to be aware that not using a credit card can result in its cancellation. This has the potential to negatively affect your credit score.

Credit card cancellation due to inactivity is a common practice for credit card companies. The time frame for that happening can differ by credit card, so you’ll need to verify your credit card agreement to determine what’s happening. A credit card can be cancelled if it hasn’t been used for a year or more. But even worse, your credit card company has the option to cancel your credit card without notifying you beforehand.

One simple way to avoid a credit card cancellation due to inactivity is to set up a small recurring charge on that card, like a streaming service that costs under $20 per month. If the card’s rewards program isn’t good, you won’t lose out on any cash back by charging that small expense every month. Your account will remain open without any need to worry about it. Don’t forget that having a higher credit limit can improve your credit score, but you never know when you may need to make a significant purchase on a credit card. Having access to credit is a good thing, so do your part to keep your cards active if there’s no fee for hanging onto them.

Here at CreditMonarch, we strive in helping everyone choose the credit card that suits them best. We believe these are the top rated and most popular credit cards of June 2024.

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