What are the Negative Impacts of Unused Credit Cards?

[Suba]

I see many people have more than two credit cards in their wallets. A credit card is active from the moment it's created, and it remains active until the bank decides to deactivate it, either at the cardholder's request or unilaterally deactivated by the bank.

Although we aren't directly charged interest or late fees, there are certainly other risks/negative impacts hidden behind them. In your opinion, what are the negative impacts of unused credit cards?

 

[Nomad]

The only thing I can think of is you have to pay the annual fees even when you are not using your credit card.

 

[Augusta]

Not using a credit card regularly can cause the card to become inactive. If a credit card issuer deems your account to be inactive, it may close the account.

 

[kit_hung]

Having multiple credit cards without using them is like carrying unnecessary baggage. First, they can damage your credit score because a large limit without activity is seen as a risk. Second, the bank can silently charge you fees even if you have no balance. Third, there is a risk of fraud. If someone gets your details, they can use them without you knowing. They can also make you unable to control your debts because temptation is high. Finally, it is the stress of keeping track of multiple accounts that do not help you much.

 

[Starmix]

The bank won't earn interest from your credit card if unused. It's business and a bank earns interests from credit card holders. If it's unused most likely, the bank will be forced to deactivate the credit card.

 

[Augusta]

Closing an inactive credit card account decreases the amount of credit available to you and can have a negative impact on your credit score.

 

[Springtime]

If you are not required to pay any annual fee for the credit card, I don't see any negative impacts of unused credit cards. You can keep it just in case you need additional money for emergency purposes.