If you stop spending money on your credit card altogether, it may not directly hurt your credit score. However, there are a few factors to consider:
- Credit Utilization: Your credit utilization ratio, which is the amount of credit you’re using compared to your total credit limit, can impact your credit score. If you completely stop spending on your credit card, your credit utilization ratio will decrease, potentially improving your credit score. Low credit utilization is generally viewed positively by credit scoring models.
- Payment History: Your payment history plays a significant role in your credit score. If you stop using your credit card altogether, you won’t have new transactions to make payments on. However, it’s crucial to continue paying off any outstanding balances or monthly minimum payments on time to maintain a positive payment history. Late or missed payments can have a negative impact on your credit score.
- Credit Mix and Active Accounts: Credit scoring models also consider the types of credit accounts you have and your overall credit mix. If you have a credit card as part of your credit mix and you stop using it, it may not directly harm your credit score, but it may limit the diversity of your credit types. Having an active credit card that you use responsibly can contribute to a more well-rounded credit profile.
It’s important to note that while stopping spending on your credit card may not directly hurt your credit score, your credit score is influenced by a variety of factors. Responsible credit usage and maintaining a positive payment history over time are key elements for building and maintaining a strong credit score.
If you choose to stop using your credit card, it’s generally recommended to keep the account open and consider making occasional small purchases to keep the account active. This can help demonstrate ongoing responsible credit management and contribute positively to your credit history.