Credit cards are a convenient way to make purchases and manage finances. However, there are certain rules and guidelines that must be followed when it comes to keeping a credit card unused for an extended period. In this article, we will explore how long you can keep a credit card without using it and what implications it may have on your account.
The first thing to understand is that the length of time you can keep a credit card unused depends on the terms and conditions of the card issuer. Each financial institution has its own policies regarding inactivity or dormancy fees, which can range from zero to several dollars per month. These fees are charged if the cardholder does not use the card for a specified period, usually between six months and one year.
To avoid these fees, some cardholders choose to close their credit cards after a period of inactivity. However, closing a credit card can have negative consequences, such as losing any accumulated rewards points or affecting your credit score temporarily. Therefore, it is essential to weigh the pros and cons before deciding to close a card.
If you decide to keep your credit card active but unused, it is crucial to monitor your account regularly to ensure no unexpected charges or fees are applied. Some card issuers may also require you to maintain a minimum balance or make a payment each month to avoid inactivity fees. This can help prevent the card from being classified as inactive and subject to fees.
Another option for maintaining an unused credit card is to set up automatic payments for recurring bills or subscriptions. By scheduling regular payments, you can ensure that the card remains active and avoid any fees associated with inactivity. Additionally, setting up automatic payments can help you stay organized and avoid late fees or missed payments.
It is also important to note that unused credit cards can sometimes be targeted by fraudsters. If you have not used your card for an extended period, it is possible that someone could attempt to use it for unauthorized transactions. To protect your account, consider enabling online or mobile banking alerts, which can notify you of any suspicious activity immediately.
In conclusion, the length of time you can keep a credit card unused depends on the card issuer's policies. While some institutions charge inactivity fees, others do not. If you choose to keep your card active but unused, it is essential to monitor your account regularly and take steps to avoid fees or penalties. Alternatively, you can close the card if you are confident that you will not need it again in the near future. However, closing a card should be done with caution, considering the potential impact on your credit score and rewards points.
As a responsible cardholder, it is important to understand the terms and conditions of your credit card agreement and to take proactive measures to manage your account effectively. By doing so, you can avoid unnecessary fees and maintain a healthy credit history.