topic Re: Another Credit Card question....... in Community Chat

Another Credit Card question.......

SahmIam — Fri, 19 Aug 2016 18:38:45 GMT

Since this forum gave such amazing information the last time I asked, I thought this would be the perfect place for another question that has left me going "Hmmmm...":

If you apply for a credit card, receive it but do NOT activate it; what will show up on your credit report?

It's not closed so that wouldn't bring a DING, correct?

It's not open, though, is it? It's not activated so....

When asked this, I didn't have an answer and well, no one in the family did. Talk about a group of adults feeling like idiots regarding something so important!

Re: Another Credit Card question.......

bri20 — Fri, 19 Aug 2016 18:43:22 GMT

I really don't know.

. Does the card have to be activated for the account to be open?

Re: Another Credit Card question.......

missy1 — Fri, 19 Aug 2016 18:46:20 GMT

Yes it will. It doesn't matter if you activate it. You agreed to the terms already.

@SahmIam

Re: Another Credit Card question.......

SeaMaiden — Fri, 19 Aug 2016 18:46:53 GMT

the account is still open in your name...and shows up on your credit report, but, can not be used until you activate it.

Re: Another Credit Card question.......

nomless — Fri, 19 Aug 2016 18:51:33 GMT

The account is opened and reported to credit reporting agencies when your application is accepted. It's the application that may affect you score, not whether you activate the card. If you don't activate, the issuer might contact you to find out if you received the card.

This article explains it. You can Google for more info.

Re: Another Credit Card question.......

bri20 — Fri, 19 Aug 2016 18:52:12 GMT

@SeaMaiden wrote:
the account is still open in your name...and shows up on your credit report, but, can not be used until you activate it.

That's what I thought too

The account is open.

Re: Another Credit Card question.......

SahmIam — Fri, 19 Aug 2016 18:57:37 GMT

Ok, so.... it it's open then the amount of credit you COULD spend shows up. If you close that card if will affect your ratio.

However, that card isn't OPEN because you can't use an non-activated CC.

See what we're discussing?

How can it affect your credit if it isn't opened yet? If you call to say you're NOT going to activate it, they can't close it because it wasn't opened....and would you believe that this EXACT conversation took place in front of my when my SIL called the issuing bank?

It looks as if THEY don't know how it works.

Re: Another Credit Card question.......

bri20 — Fri, 19 Aug 2016 19:00:56 GMT

I guess I don't understand why you wouldn't activate the card?

You in the general sense, not you @SahmIam.

Re: Another Credit Card question.......

missy1 — Fri, 19 Aug 2016 19:15:30 GMT

I wanted to know this too. it is on the fine print with that paper you get with the credit card.

It doesn't matter if you activate it or not. When you signed up , you agreed. (rather it was on-line or in the mail)

My case I had to pay an anuual fee. Even if I did not activate it, I would still have to pay it.

The credit company will call you if you haven't opened it up within a certain period of time.

Re: Another Credit Card question.......

millieshops — Fri, 19 Aug 2016 19:13:19 GMT

If you don't want a new card and your credit score is good to excellent, there's not much harm in just activating the account and then closing it. The ding from a new card is really quite small.

You don't want to close old accounts that have built up your credit history, you don't want to open and close a bunch of cards, and if you don't have a pretty good score already, keeping the new card and not using it all that much is a good way to keep your usage percentage of credit low. Don't keep it and never use it - that does nothing for you. Use it and pay off the balance on time in full.

I never want to be without an "empty" credit card in case of emergency, but I also never want to charge so much on my every day account that I can't pay off the full balance at the end of the cycle.

Re: Another Credit Card question.......

SahmIam — Fri, 19 Aug 2016 19:16:57 GMT

@bri20 @missy1

But unless you activate it, you can't use it. So, it's not open to use the available credit limit (as per the bank).

Here's the situation (in brief):

*SIL want's to consolidate 2 CC's with high interest rate (medical bills due to lay off)

*Bank offered her NO INTEREST CC for... a year? 18 months? something like that (don't have it in front of me).

*Received card but the interest rate was HIGHER than the two she already has.

*Called bank and CS doesn't know why, they don't deal with that and SIL can't speak to the those who pull the reports/approve CC. (I know this because I've tried in the past and they won't).

*If she closes it, it's a ding. So, what if she doesn't activate it? Bank CS was "Uh....."

NOW you know why I'm asking here because none of us know the answer (and we're ashamed, to be honest). Round and round it went with the bank CS, the supervisor and HER supervisor. So, the fine print must not be read by those folks, you know (not be snarky but it's not really addressed in the fine print-this specific situation).

Re: Another Credit Card question.......

missy1 — Fri, 19 Aug 2016 19:23:35 GMT

I do know the answer. Just because you don't activate it doesn't mean it doesn't exist anymore. The answer can easily be found on-line.

I did find online if the credit card wasn't to your liking (the terms) you can send it back .

Re: Another Credit Card question.......

bri20 — Fri, 19 Aug 2016 19:23:10 GMT

@SahmIam, the accout is already opened. It exists.

Re: Another Credit Card question.......

SahmIam — Fri, 19 Aug 2016 19:28:21 GMT

Re: Another Credit Card question.......

SahmIam — Fri, 19 Aug 2016 19:26:02 GMT

Yes, it exist but you can't use it to purchase anything UNLESS you activate it. The question is... if you don't activate it then it's not opened (as per the bank). If it's not opened, you can't close it (per the bank). So, what do you do? Leave it alone? Activate it and then close it? Will either leave a negative mark on her credit report?

THIS is what we're trying to figure out.

Re: Another Credit Card question.......

SahmIam — Fri, 19 Aug 2016 19:27:25 GMT

@missy1 wrote:
I do know the answer. Just because you don't activate it doesn't mean it doesn't exist anymore. The answer can easily be found on-line.

I did find online if the credit card wasn't to your liking (the terms) you can send it back .

@missy1 That was what we thought. However, we can't find out what that does to the credit report. The bank was clueless.

Re: Another Credit Card question.......

missy1 — Fri, 19 Aug 2016 19:27:42 GMT

@SahmIam wrote:
@missy1 Been online. Been on the phone with the bank issueing the CC and no one appears to know.

Except you. What, exactly, should Iook for in order to know the answer to this as well?

I saw this info on my credit card pamphlet that came with the credit card. I also looked it up.

At some point the credit card company will call you. So I am guessing you will have to tell them you are not activating it, and you are sending it back.

Re: Another Credit Card question.......

bri20 — Fri, 19 Aug 2016 19:29:42 GMT

Does she have access to her credit report? Maybe call one of the credit reporting agencies and ask them.

How much of a ding is she going to take by activating it and closing it? I wouldn't just leave it and not activate it.

Re: Another Credit Card question.......

missy1 — Fri, 19 Aug 2016 19:30:37 GMT

http://www.creditcards.com/credit-card-news/unactivated-credit-card-credit-score-impact-1377.php

Re: Another Credit Card question.......

SahmIam — Fri, 19 Aug 2016 19:30:43 GMT

@missy1 I removed my original reply because I felt it was snarky.

This is what we suggested but what we can't find out is what it will do to the credit report. She's already angry because the interst rate was almost 30% and her credit report shows NOTHING that would indicate her deserving an interest rate this high.

I would be ticked too if that happened to me.