Many a times an unsolicited credit card is issued, even without any application request. While some of these cards are issued on opening a savings or a salary account with a bank, others are issued under the pretext of pre-approved card offers (based on your relationship value with the bank or the provider). Often we tend to ignore the issuance and delivery of such cards under our name, and thus, never take them out of the kit. However, have you ever thought of how such inactivated credit cards are impacting your credit score and your finances. If not, read on and understand what happens if you don’t activate your credit card?
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Impact on credit score by a credit card you never activated
Earlier, as soon as you get approved for a card, the first thing that the issuers did was to create your new credit card account. Based on this new account, your physical card was created and then linked to it. Now, credit card issuers can create your credit card account only after the activation of your credit card, which is only authenticated via an OTP based process. Thus, now the card issuer cannot create a credit card account, on the issuance of a credit card, unless a card is activated. Thus, in-activated credit cards have no impact on your credit score.
Additionally, the issuers cannot share your information with the credit bureaus if you don’t activate your card. Even if they do, the issuers need to inform the cardholders about any information that is being shared with the credit bureaus regarding repayment records, credit history, etc. That ways, cardholders can keep a check on what is being reported to the bureau, and if any false credit card account is part of the report. You are not liable for a maintaining a card account for a credit card you never activated.
Credit Card Activation Guidelines as per RBI- In activated Credit Cards to be closed after 30 days
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| You are required to activate your credit card within 30 days, if you fail to do so, you will get a grace period of 7 days. After 37 days, your credit card will be closed by your issuer if you don’t activate it through an OTP-based process. Thus, if you do not activate your credit card, within the required time period, the issued credit card will be closed. |
Will closing an inactive credit card affect your credit score?
As we have mentioned above that you are required to activate your credit card within 37 days of card issuance, including a grace period of 7 days. If you do not activate your card, your credit card will be closed by your issuer and you cannot use it for any kind of transactions. Therefore, even if your card comes with an annual fee, you do not have to pay it as your account will be closed. Hence, closing your inactive credit cards will not harm your credit score as no charges will be levied on it.
Fees and charges on your inactive credit card
You would be annoyed at the thought of paying fees on a card you have never used. If you do not activate your credit card within 37 days, then your credit card will be closed by your card issuer. Hence, there will be no fees and charges applicable to your card. So, you don’t have to worry about paying the charges even if you are not using your card.
How to activate your credit card?
The procedure for card activation may differ from one card issuer to another. You are required to activate your credit card through an OTP-based process which will allow you to use your card for online as well as offline transactions. Here are ways to activate top credit cards by popular banks:
| HDFC Credit Card Activation | SBI Credit Card Activation |
| Axis Credit Card Activation | ICICI Credit Card Activation |
| Kotak Credit Card Activation | RBL Credit Card Activation |
34 Comments
I have received message from rbl credit card department you have approved 172000 limit but I’m not open cover if annual charges applicable or not
Hi Devaramnarsireddy,
If your card charges annual fee, it will be applicable whether you use the card or not. Also, you should open your card document and check the annual charges and other terms and conditions.
For further assistance, you may call RBL Bank Credit Card Customer Care on +91 22 6232 7777.
I have applied for credit card but ididnt receive because i was out of state but am getting payment messages, now how to deactivate sbi credit card can you suggest ?
I had applied for axis magnum credit card on Feb 2020 till July 29 I had not received credit card and I have received bill to pay fees of 11800 due on 7 August 2020 please suggest what to do next step
Hi Dhaval,
If there was no waiver condition on the first year fee of Rs. 10,000, you will have to pay the same along with 18% tax. Non-payment will result in penalties and finance charges which will further add to your bills.
We advise you to speak with Axis Bank customer care to get more clarity on why your card was delayed and the fee charged.
I never received my ICICI bank credit card. Will it be activated?
I have a HDFC credit card which isn’t used. Its valid date was up to 05/20. Can I use it?
Hi Prasant,
You will not be able to use your credit card as it has already expired. The bank usually sends a new card to your communication address a month before the card expires. If you have not received a new card, you may contact HDFC customer care.
Once you get the new card, you can activate it and then use it to make purchases.