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 haven’t activated my standard chartered Bank credit and it was closed due to no activation within one month but annual fees bill was generated for July month and now in August another bill generated with late fees charges. I don’t understand what can I do, when I inactive card has been already closed why Standard chartered bank asking for annual fees with late payment charges.
If you have not activated your credit card, joining/annual fee should not be charged by the issuer. Please contact your card provider to get more clarity on this.
Maine sbi k simply click apply kiya tha lekin un logo ne doosra kar diya jiske charges zyada hai lekin mai kiya karu woh. Dino ke andar aajyega kiya mujhe charges dene padenge
If you did not get the card that you applied for, you can choose to close the account. Once the card is cancelled, no charges would be applicable. Connect with your card issuer and request for card cancellation.
Hi, I applied for Axis bank myZone credit card and ym kyc process is completed too however I do not wish to get the card as a more better card is available for me from Airtel Axis Bank credit card. I will not activate my axis myZone credit card when it arrives but want to know if it will affect my credit score if cancelled before activation itself or nothing will be impacted?
If the KYC process is complete, it is likely that the card will be delivered to you. You can choose to cancel the card without activating it and it will not impact your score. However, as you again apply for Airtel Axis Card, it could cause a temporary dip in your credit score due to another hard inquiry, which will improve with time.
thank you very much mam I was very worried about this. Recently Kotak Mahindra Bank has issued me a CC. Even I had already declined to apply CC on phone call but they continuously kept calling me in this regard day after day. At last he persuaded me. And CC was delivered to my address. But now I am not interested in activating it. Thanks for sharing valuable information.
We are glad that this article was helpful for you.
I have upgraded my iCICI credit card to mine credit card and bank sent me rubyx credit card. What should I do?
If you do not wish to use ICICI Rubyx Credit Card, you can contact the bank either to switch to a different credit card or to close your current credit card account. You can contact the ICICI bank credit card customer care on toll-free number 18001080 or on 91-22-33667777.