Does Credit Score Go Up If You Don't Use It?
Your credit score won't improve simply by avoiding credit use. While many people believe that staying away from credit cards and loans protects their financial standing, this approach can actually hurt their credit score over time. Credit scoring models need to see consistent, responsible credit management to assess your creditworthiness. Complete credit inactivity provides limited evidence for lenders to evaluate your ability to handle credit responsibly. Key Takeaways Credit inactivity doesn't improve your score - Credit scoring models require ongoing responsible usage to maintain and build scores Unused accounts may be closed - Credit card issuers often close accounts with no activity, which shortens your credit history Optimal utilisation is 1-10% - Using a small amount of available credit shows responsible management Regular small purchases work best - Monthly transactions followed by full payments demonstrate active credit management Keep old accounts active - Make s...