How does not using a credit card affect score?
Not using a credit card at all can actually hurt your credit score over time. When I first received mine, I assumed that leaving it untouched would protect me from debt.
After that, I realised that building and maintaining a good credit score depends mainly on consistent and responsible credit history.
If you never use your card, lenders have insufficient information to determine how well you manage credit. A credit score depends on timely repayments, utilisation ratio, and good usage.
By keeping your card inactive, you miss out on these positive signals. In fact, issuers may even close an unused account or reduce your credit limit. Both cases can drag your score down.
Here is how I make sure my credit card benefits me:
- I pay for everyday needs like fuel or groceries with my credit card, then clear the balance in full. Sometimes, I pay the bill even before the bill is generated.
- I keep my spending under 30% of my credit limit to show banks that I manage money responsibly.
- I avoid leaving my credit card unused for long stretches because consistent use helps build trust with banks.
In short, you should not avoid using your credit card altogether, but use it responsibly. This way, when it comes time to apply for a loan or request a premium card, you are in a much stronger position to get better offers.