Another Credit Card question.......

SahmIam · ‎04-16-2010

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!

bri20 · ‎03-10-2016

I really don't know.

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

missy1 · ‎03-10-2010

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

@SahmIam

SeaMaiden · ‎03-10-2010

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

nomless · ‎03-10-2010

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.

bri20 · ‎03-10-2016

@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.

SahmIam · ‎04-16-2010

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.

bri20 · ‎03-10-2016

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

You in the general sense, not you @SahmIam.

missy1 · ‎03-10-2010

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.

millieshops · ‎03-09-2010

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.