New Delhi: Many people leave their credit cards unused for months without giving it a second thought. But did you know that not using your credit card for too long could actually hurt your credit score? It might seem harmless, but an idle credit card can lead to some unexpected consequences.

Is It Bad to Leave Your Credit Card Unused?

Letting your credit card sit idle for too long might seem harmless, but it can affect your credit score in a few surprising ways:

Credit Utilisation Ratio: Not using your card can keep your spending low, which is good for your score. But if the bank reduces your credit limit or closes the card due to inactivity, your total available credit drops. This can raise your utilisation ratio and hurt your score.

Risk of Account Closure: Credit card issuers may shut down accounts that haven’t been used in a while. When this happens, it shortens your credit history and reduces your credit limit — both of which can negatively affect your score.

Payment History: Since this is one of the biggest factors in your credit score, not using your card means you’re missing out on the chance to build a strong payment record through consistent, on-time payments.

What’s the Best Way to Manage an Unused Credit Card?

Instead of letting your credit card gather dust, here are a few simple ways to keep it active and protect your credit score:

Use it once in a while: Make a small purchase every few months and pay it off right away.

Set up automatic payments: Link the card to a small recurring bill, like a streaming subscription, to keep it in use without effort.

Check the fine print: Some cards charge inactivity or annual fees — make sure you’re aware of the terms.

What Affects Your Credit Score?

Before you start working on improving your credit score, it’s helpful to understand what factors actually influence it:

Repayment history: Paying your EMIs or credit card bills on time is one of the biggest factors.

Credit utilisation: This is how much of your available credit you’re using. Keeping it low is better.

Length of credit history: The longer your credit history, the better it looks to lenders.

Credit mix: A healthy mix of secured (like home loans) and unsecured loans (like credit cards) can boost your score.

New credit inquiries: Applying for too many loans or cards in a short time can negatively impact your score.