What Happens if You Don't Use Your Credit Card? | Capital One (2024)

FAQs

What Happens if You Don't Use Your Credit Card? | Capital One? ›

If you don't use your card, your credit card issuer may lower your credit limit or close your account due to inactivity. Closing a credit card account can affect your credit scores by decreasing your available credit and increasing your credit utilization ratio.

When the account has been inactive for too long, Capital One will notify the cardholder by mail or email. That way, Capital One gives them the chance to use the account again to avoid having it closed. Note that "inactivity" means that there has been no purchase, transaction or balance on the account.

If you haven't used a card for a long period, it generally will not hurt your credit score. However, if a lender notices your inactivity and decides to close the account, it can cause your score to slip.

Not using a credit card isn't necessarily a bad thing. However, it can come with some unintended consequences. Although charging inactivity fees is no longer legal, issuers have other options at their disposal — some of which could affect your credit score, your available credit and more.

While Capital One doesn't charge fees for going over your credit limit, other credit card issuers may. A card issuer can charge an over-the-limit fee only if you've agreed to participate in its over-the-limit coverage program.

When a credit card account goes 180 days (a full 6 months) past due, the credit card company must close and charge off the account. This means the account is permanently closed and written off as a loss to the company, although the debt is still owed.

If you don't use your card, your credit card issuer may lower your credit limit or close your account due to inactivity. Closing a credit card account can affect your credit scores by decreasing your available credit and increasing your credit utilization ratio.

If you have a zero balance on credit accounts, you show you have paid back your borrowed money. A zero balance won't harm or help your credit. To find out how we got here, we have to understand what credit is and the history of credit agencies.

Keeping a zero balance is a sign that you're being responsible with the credit extended to you. As long as you keep utilization low and continue on-time payments with a zero balance, there's a good chance you'll see your credit score rise, as well.

Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.

Does it hurt to have a credit card but not use it? ›

Bottom Line. If you don't use a particular credit card, you won't see an impact on your credit score as long as the card stays open. But the consequences to inactive credit card accounts could have an unwanted effect if the bank decides to close your card.

The short answer is yes. A credit card issuer has the right to close your credit card if you don't use it. Unfortunately, closing an account can have an adverse effect on your credit score.

If you don't use a credit card for a year or more, the issuer may decide to close the account. In fact, inactivity is one of the most common reasons for account cancellations. When your account is idle, the card issuer makes no money from transaction fees paid by merchants or from interest if you carry a balance.

How does Capital One's credit line increase program work? For certain cards, Capital One indicates that it will automatically review your account for credit line increases after as few as six months.

The U.S. Bank Altitude Go Visa Secured Card is the best option if you have limited/poor credit and are looking for a high credit limit. You can deposit anywhere from $300 to $5,000, making your maximum credit limit available $5,000.

The Consumer Financial Protection Bureau recommends keeping your credit utilization under 30%. For instance, if you have a $1,000 credit limit, aim to keep your credit below $300.

Lock your card

It takes just a few taps on the Capital One Mobile app. And if you decide you want to use the card in the future, you can unlock it just as easily. Just remember that your account may eventually be closed due to inactivity, so be sure to contact your lender for details.

Without notice, your credit card company can reduce your credit limit or shut down your account when you don't use your card for a period of time. What period of time, you ask? There's no predefined time limit for inactivity that triggers an account closure.

We typically report accounts as late to the credit bureaus after they are more than 30 days past due. For more information, review some of the top things to know about late credit card payments. Once you're in collections, we may call you from 800-955-6600, 800-435-1514, or another servicing number.