Many people assume that an unused credit card won’t cause any issues, but the reality is quite the opposite.
A credit card that is rarely or never used can still create negative impacts, such as ongoing annual fees, effects on credit scores, and missed opportunities for promos and cashback.
Understanding the risks of not using a credit card is important so you can manage it more wisely. Check out the full explanation below so you don’t take the wrong step!
What Happens If a Credit Card Is Not Used?
In reality, a credit card that is unused for a long period of time — or even has never been activated after being received — can still pose risks.
Thinking that not using the card means no bills is a big misconception because charges can still appear. Here are several impacts and risks you need to know if a credit card is not used:
1. Annual Fees Still Apply
If you don’t use your credit card, will you still be billed? Even if the card is never used, annual fees are still charged as long as the card remains active. The amount varies, ranging from a few hundred thousand to more than one million rupiah per year, depending on the type of card.
If unpaid, penalties may accumulate and become a financial burden, so the bill must still be monitored even if the card is not used.
2. Credit Score Declines
An unused credit card can cause a credit score to stagnate or drop. Without recorded transactions and payments, financial institutions have difficulty assessing your creditworthiness.
As a result, when applying for loans such as mortgages or vehicle financing, banks may not have sufficient data to evaluate your risk profile.
3. Risk of Deactivation by the Bank
A credit card that has not been used for a long time may be deactivated by the bank. Although this might reduce annual fees, deactivation also means losing access to benefits such as easy transactions, promos, and rewards.
Fortunately, banks usually confirm in advance before deactivating a card to reduce potential issues with your credit history.
4. Harder to Get Approved for Loans
A declining credit score due to rarely using a credit card will make it more difficult to get loan approval from banks, including personal loans.
Since banks assess borrower eligibility based on credit scores, a lower score results in a higher chance of loan application rejection.
5. Accumulated Debt
If annual credit card fees are unpaid because the card is not being used, debt will pile up. For example, an annual fee of Rp300,000 per year left unpaid for 5 years could reach Rp1.5 million. If left unchecked, the debt will continue to grow over time.
6. Losing Credit Card Benefits
Credit cards offer various benefits, including promos, cashback, reward points, and 0% installments. If the card is not used, all of these benefits are wasted — even though, with wise usage, a credit card can help manage spending more smartly and profitably.
7. Security Risks
Another impact of not using a credit card is an increased risk of loss or data theft.
If the card is lost or the data is stolen, someone could misuse it before you realize it. Additionally, because the bill is rarely checked, suspicious transactions might go unnoticed.
8. Reduced Credit Limit
Some banks may reduce the credit limit on cards that are rarely or never used.
This affects your credit utilization ratio, which is an important factor in credit scoring, even if no transactions are made using the card.
What Can You Do?
If you have a credit card that you rarely or never use, there are two actions you can consider:
1. Use It Occasionally for Light Transactions
Use the card for small expenses such as streaming subscriptions, e-wallet top-ups, or small purchases every month. Make sure to pay the bill on time and in full to build a positive credit history without accumulating debt.
2. Close the Credit Card If It’s No Longer Needed
If the card is truly unnecessary and only generates annual fees, submit a formal closure request. Before closing the credit card, ensure:
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All bills and fees are fully paid.
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You have another payment method available.
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You are not in the middle of applying for a major loan that requires a good credit score.
Even though it may seem trivial, having an unused credit card can have long-term financial consequences.
Using the card occasionally or closing it properly can help avoid risks and maximize the benefits of a credit card.
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BFI Finance has been operating for more than 40 years and holds an official license from the Financial Services Authority (OJK), ensuring safe and transparent financing processes.
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