What Happens If You Don't Use Your Credit Card?

Have a credit card that you don’t use?

Besides losing out on the credit card’s benefits, there are financial repercussions too. We’ll uncover them. 

Account closure

Credit card issuers usually close dormant accounts. If there’s no activity on your credit card, it might get deactivated.

Reduction in credit score

If the credit card is deactivated, you lose the credit limit. This might increase the credit utilisation ratio and reduce credit score.

Annual fees

If you have a credit card with an annual fee, you will have to pay the fee even when you don’t use the card. This becomes an added expense.

Loss of card benefits

Credit cards offer reward points on each transaction. You lose out on these points if you don’t use the card.

You also miss out on other credit cards perks and privileges like lounge access, cashback, discounts, complimentary insurance cover, etc.

Keep using the card to avoid these scenarios. When you have IDFC FIRST Bank Credit Cards, the rewards and benefits don’t stop.