Business

What happens if you stop using your Credit Card? Key facts you should know

Ajay Joseph | Published : Feb 14, 2025 3:57 PM

Credit card usage has increased significantly. Many people have multiple credit cards but don't use them regularly. Have you ever wondered what happens if you stop using your credit card for an extended period?

What happens if you stop using your Credit Card? Key facts you should know

We receive numerous credit card offers daily. Many acquire cards but don't use them. Financial experts warn against leaving credit cards unused for extended periods. Let's explore the consequences.

Card Closure:

Banks may deactivate your credit card after a period of inactivity, typically 6-12 months. They might contact you before deactivation.

Credit Score Impact:

Credit card deactivation can negatively impact your credit score. Credit card usage contributes 30% to your score.

Lost Benefits:

Unused credit cards lead to lost rewards, cashback offers, and lounge access. Accumulated points and offers may expire.

Charges?:

Most Indian credit card issuers don't charge for inactivity. It's advisable to make a small transaction every 3 months. Contact your bank to deactivate if not needed.

Tips for Keeping Card Active:

Make small regular transactions, like for petrol or groceries. Regularly check your credit card statement. Close the card if truly unnecessary to avoid credit score impact.

About the Author

Ajay Joseph

With over eight years of journalistic experience, Ajay Joseph Raj. P has been a dedicated member of the Asianet Newsable team, where he serves as the Chief Copy Editor. His expertise spans Business, Career, Stock Market, National, International, and viral/trending topics, with a knack for crafting compelling narratives that connect with diverse audiences. Before joining Asianet Newsable, Ajay honed his skills at OneIndia News and Opoyi English, gaining extensive experience in delivering impactful stories across various beats.Read More...