What will happen if I do not use my credit card?

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Allison Woods

• May 18, 2020 03:38

Hi! I have an American Express credit card that I have not used in about 11 months. Wondering, is there a point in time that AE will decrease my credit limit or close the account altogether? Also, let's say I make a $50 purchase once a year, will that be enough to save my credit limit from decreasing? I am open to any advice! Thank you!

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  CHRISTOPHER BATTISTA

  • May 18, 2020 15:43

  First of all, Congratulations on managing your credit properly!

  It is not in AMEX best interest to close a line of credit for no reason. The account should stay open as long as the account is in good standing. Many card issuers will actually raise your limits if you sit with a zero balance for any period of time because it shows credit worthiness. If the rest of your credit looks good right now, i would call and request an increase. they are likely happy to oblige! you will get dinged with a hard inquiry but the boost in credit should cover the difference.

  To get the best use out of this card, I would recommend to setup one of your bills, something with a low fixed amount every month like a cellphone,  to auto pay with the Amex. Then set the Amex to Auto pay off your bank account.  This keeps a low recurring monthly balance and a recurring positive monthly payment history on your account, but does not waste money on interest like a purchase would.  

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  Steven Cahill

  • June 27, 2020 16:43

  I've had a couple card accounts become closed after an extended period of non-use. The most recent one was never once used. The account was open for at least 3 years before that happened, and I didnt see any effect on my credit score.

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