What Happens If You Stop Using Your Credit Card?

Should you keep a credit card you don’t use?

Thanks for the question, Lisa. It’s common to wonder what to do once a credit card’s welcome perks expire. In this article I’ll explain what typically happens after the introductory offers end, weigh the pros and cons of keeping a card dormant, outline possible fees and credit-score implications, and offer practical options for managing cards you no longer use.

What happens when the promo expires?

When a card’s promotional period ends, the account typically reverts to its standard terms. That usually means promotional interest rates return to the regular annual percentage rate (APR), and welcome bonuses or boosted rewards stop. Introductory offers often include reduced interest, bonus points or cash back for meeting a spending threshold in the first few months; once the window closes, expect the card to operate under its normal fees, interest rates and rewards structure.

Before the intro period ends, check the card’s updated terms and conditions so you understand the new APR, reward structure and any annual or inactivity fees. These details are usually available on your issuer’s website and were mailed with your card. Reviewing them ahead of time helps you make an informed choice about whether to keep the card, downgrade it or cancel it.

The pros and cons of keeping a card you don’t use

If you decide not to keep using a card after the introductory perks expire, weigh the benefits against the downsides. The best choice depends on your long-term credit goals, fees associated with the card, and how comfortable you are managing multiple accounts.

Pros

• Keeping a card open lengthens your credit history, which is generally positive for your credit score.
• An open account increases your total available credit and can lower your credit utilization ratio—the percentage of credit you’re using—so long as balances remain low across all cards.
• Maintaining older accounts can preserve a positive payment history on file, another factor that supports a healthy credit profile.

Cons

• Some cards charge annual fees even when you rarely use them. For premium cards, that fee can be substantial.
• Issuers may close accounts that remain unused for a long period. Account closure can reduce available credit and potentially raise your utilization ratio, which may lower your credit score.
• Inactive cards may also be subject to inactivity fees from certain issuers.

Before letting a card go dormant, check the issuer’s policy on inactivity and annual fees and consider whether the potential credit-score benefits outweigh those costs.

The biggest con of keeping a credit card you aren’t using

The most immediate downside to keeping an unused card is fees. In Canada, many cards have annual fees that apply regardless of how much you use the card; these can range from a modest amount for basic cards to several hundred dollars for premium travel or rewards cards. Some issuers also impose inactivity fees if the card hasn’t been used for a set number of months. Carefully read your card’s fee schedule to avoid surprises, and monitor your statements regularly for unexpected charges.

If you no longer need the benefits of a card with a hefty fee, consider downgrading to a no-fee version of that issuer’s card, transferring balances elsewhere, or using the card for one small recurring purchase each year to keep the account active without paying the welcome-offer-driven cost of using it heavily.

Featured credit cards