New Delhi, April 14 -- Having a credit card and not using it might seem like a smart, responsible way to manage your finances. Well, not always while the credit card is unused it seems harmless, many credit card holders don't understand the consequences of inactivity and how it relates to their credit score.

Let's dig a little deeper into the consequences of inactivity on the credit card and how it affects your financial life.

Before you begin using any methods, it is important to know what impacts your credit score:

1. Credit utilisation ratio: If you never utilise the card, you are keeping that rate low, which is good for your credit score. However, if the issuer closes the account due to inactivity or lowers your credit limit, your ...