What happens if a credit card is not activated within 30 days?

Consequences of Failing to Activate a Credit Card Within 30 Days

Upon receiving a new credit card, it is crucial to activate it within the specified timeframe, typically 30 days from the date of issuance. Neglecting to do so can lead to severe consequences for the cardholder.

Closure of the Credit Card

The most common outcome of failing to activate a credit card within the allotted time is its closure. The issuer may automatically cancel the card due to inactivity, effectively preventing its use. This means that the cardholder will not be able to access the credit line or any associated rewards or benefits.

Missed Opportunity for Card Benefits

Many credit cards offer valuable perks and rewards to active cardholders. These benefits can include cash back, points accumulation, travel rewards, and insurance protection. Failing to activate the card within the required timeframe will result in the cardholder missing out on these potential advantages.

Damage to Credit Score

Closed credit accounts can have a negative impact on a credit score. When a creditor closes an account, it can be recorded as a “closed by grantor” status on the individual’s credit report. This can lower the credit score, making it more difficult to qualify for future credit or loans at favorable terms.

Avoiding Card Closure

To prevent the closure of a credit card due to inactivity, it is essential to activate it within the specified time frame. Typically, this can be done through an online portal provided by the issuer or by calling the customer service number listed on the card.

Steps to Take

If you have received a new credit card but have not yet activated it, follow these steps to avoid closure:

• Locate the activation instructions included with the card or contact the issuer’s customer service.
• Provide the required information, such as the card number, expiration date, and Social Security number.
• Set up a PIN number or security code that will be used for transactions.
• Verify the activation by making a small purchase or checking the account online.

Conclusion

Activating a new credit card within the specified timeframe is a crucial step to ensure its accessibility and prevent potential damage to your credit score. By following the activation instructions provided by the issuer, you can take advantage of the card’s benefits and avoid the consequences of card closure.