Most people assume that not using their credit card frequently—or at all—is a smart financial move. After all, no usage means no debt, right?
But here’s the truth: rare or zero credit card usage can actually hurt your credit score.
At Vizzve Finance, we help you make smarter credit choices. Let's break down how low activity on your credit card may backfire and what you should do instead.
📉 How Infrequent Card Usage Affects Your Credit Score
1. Inactive Account May Be Closed
Banks often close credit cards after 6–12 months of inactivity. This reduces your total credit limit, and can:
Increase your credit utilization ratio
Lower your credit score unexpectedly
2. Utilization Ratio Becomes Zero or Distorted
Your credit utilization ratio (ideal: under 30%) plays a huge role in your CIBIL score. If you don’t use the card at all:
The card may not be reported actively to credit bureaus
Your profile might look thin or inactive
3. Credit History Weakens
Long-standing cards build your credit history. If they’re unused and closed, your average credit age shortens — a negative signal to lenders.
4. Lenders May View It as Dormant Behavior
A rarely-used card may suggest to future lenders that:
You don't rely on credit
Or worse, you’re not building creditworthiness
✅ Vizzve Finance Tips to Keep Your Credit Card Active
Use it once a month for small expenses (like Netflix, groceries, fuel)
Set auto-payments for utility bills using your card
Repay in full each month to avoid interest
Avoid cash withdrawals and high spends
Don’t close older cards unless absolutely necessary
💡 Should You Cancel a Card You Don't Use?
Not always. At Vizzve Finance, we advise:
Keep old, no-annual-fee cards to improve credit history
Cancel only if it has high fees and no benefits
First, consult our free credit score check tool to see the impact
🧠 Why Smart Usage Builds Stronger Credit
Credit bureaus like CIBIL and Experian consider:
Consistency of usage
Timely repayments
Active credit mix (cards + loans)
Low credit utilization
By keeping even minimal activity on your card, you send a signal that you’re financially responsible and creditworthy.
📌 Vizzve Finance Can Help You:
✅ Get credit score insights
✅ Find low-interest personal loans if your score drops
✅ Offer EMI alternatives to repay any credit card dues
✅ Help with debt consolidation or balance transfers
✅ Teach credit-building habits through smart tips
FAQs
Q1: How often should I use my credit card to keep it active?
A: Ideally, once a month or once every 2 months—even a small transaction is enough.
Q2: Will not using my credit card drop my credit score?
A: Yes. Inactivity may lead to account closure or reduced reporting, both of which can impact your CIBIL score.
Q3: Can Vizzve Finance help improve my score?
A: Absolutely. Vizzve offers credit analysis, repayment planning, and helps you choose smart financial tools.
Q4: What if I already have a low credit score?
A: Don’t worry. Vizzve Finance offers low-credit score loan options and actionable steps to rebuild your score.
Published on 3rd july
Publisher : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.