Every once in a while, you might apply for a new credit card you ultimately decide you don't need. Maybe you were pressured to open a store card at check out, or you wanted to take advantage of welcome bonus but later decided the annual fee was too high.
If you're in this boat, you might consider simply not activating the card and hope the account just disappears. But your account is considered open the moment your application is approved — regardless of whether you activate the card.
Since opening a new account can have some impact on your credit score, you need to know what to do if you realize you don't want to activate your card and what options you have.
Below, CNBC Select review what happens if you don't activate a credit card and how that affects your credit score.
What happens if you don't activate a credit card
Your account is considered open from the date you're approved for the card. If you don't activate your card your account will still be open, you just won't be able to use it.
The one exception to that rule is if you opened a card with instant access, such as the Blue Cash Preferred® Card from American Express or the Prime Visa, and received a temporary card number.
Your card issuer may reach out if you haven't activated your card after a certain amount of time, usually 45 to 60 days, to see if you received it. After that time, you may need to request a new card if you want to activate it.
How not activating a credit card affects your credit
When you apply for a credit card, an inquiry typically appears on your credit report. This can ding your credit score roughly five points, though it will bounce back soon. Whether you activate your card or not has no direct affect on your credit.
But if you don't activate your card, there are still a few things to keep in mind. For starters, you should be aware if your card charges an annual fee. Card issuers often charge annual fees on your first bill and every year on the anniversary of your account opening. The fee shows up on your balance in most cases, and if you forget about it, the fee can easily become a missed payment.
If you skip card activation and don't use your card, you're still responsible to pay for the annual fee. Missing the annual fee payment can hurt your credit score since payment history is the most important factorin calculating your score.
You should also consider how opening a new card affects your credit utilization rate, which is the ratio of your total debt to total available credit. A new card provides a new credit limit and if you never use your card, the added credit limit can help lower your credit utilization rate.
For example, if you currently have one card with a $3,000 balance and $4,000 credit limit, your utilization is high at 75%. But say you open a new card with a $6,000 credit limit and never use it, your total utilization would drop to 30% — which experts consider ideal, though 10% is even better.
While not using your card can help your utilization, it may impact your account status.If you don't activate a credit card and thus don't use the card, your account may be closed. Card issuers typically close accounts that aren't used within a certain time period, usually over a year. This may happen without noticeand can hurt your credit, so you should take action prior to automatic account closure, which we explain below.
Bottom line
If you change your mind and don't want a card that you recently opened, it's smarter to call the issuer to cancel the cardthan just ignoring it. You might get hit with an unexpected annual fee, or the card will be closed because the issuer considers your account inactive.
If the card has an annual fee another option is to call your card issuer to see if you can downgrade to a no annual fee card.
Information about the Prime Visa has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication; if you purchase something through Select links we may earn a commission.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
FAQs
It's possible your credit card company will cancel the account if you fail to activate your card within 45 or 60 days. If you sign up for a credit card and no longer need it, you can call the number on the back of your card to cancel the account.
Can you cancel a credit card before activating it? ›
Can you cancel a credit card before activating it? You can cancel a credit card before activating it, but it will be the same as canceling a card at any other time. And it might still impact your credit scores.
What happens if you don't activate replacement credit card? ›
What happens if you don't activate a credit card. Your account is considered open from the date you're approved for the card. If you don't activate your card your account will still be open, you just won't be able to use it.
Will my credit score go down if I dont activate my credit card? ›
Key points:
You usually have 45-60 days to activate a new credit card before your credit card issuer sends you a message or cancels your account. Not activating may affect your credit score because your credit utilization ratio or credit mix may be impacted if your card issuer closes the account.
Do all new credit cards need to be activated? ›
You need to activate your credit card for security purposes. Activating your card tells your bank or credit card provider that you're the correct cardholder and it hasn't ended up in the wrong hands. You'll normally need to activate any new credit card you receive in the post.
How do I cancel my credit card without activating it? ›
To cancel a credit card proactively, you can call your credit card's customer service line and inform them that you want to close your account. First, confirm with the customer service rep that there aren't any fees owed on the card.
How do I cancel a credit card I just opened? ›
To cancel a new credit card, start by checking your balance and then call your card issuer:
- Make sure any outstanding balances on the credit card are paid off in full or transferred to another card.
- Call the number on the back of your card and speak with a representative to request to close the account.
Choosing not to activate a new credit card won't hurt your credit score, but you will miss the chance to improve your credit score with responsible use and will have wasted a hard inquiry.
What happens if I do not activate my credit card? ›
If you don't activate your credit card, it remains inactive and cannot be used for any transactions. However, the card may still incur annual or maintenance fees, and it might eventually be closed by the issuer after a certain period of inactivity.
Does cancelling a credit card hurt your credit? ›
There are times when canceling a credit card can be the right call. However, closing a credit card can hurt your credit, especially if it's one of your oldest accounts and it's in good standing (meaning you're making payments on time and as agreed).
Typically, leaving your credit card accounts open is the best option, even if you're not using them. However, there are a few valid reasons for deciding to close an account.
What happens if I don't activate my Credit One credit card? ›
You'll be unable to use your new credit card for purchases or other transactions until you activate it. Additionally, your account may be automatically closed if you don't activate your card within 14 days after you receive it in the mail.
What happens if I don't activate my Capital One credit card? ›
Even if you don't activate your credit card, your account will likely remain open. If it remains inactive for too long though, your credit card issuer may close the account. And that's an inconvenience that can also impact your credit scores.
Do I need to cancel a credit card I never activated? ›
Credit card issuers can decide to shutter an account that's never been activated, and an account closure can harm your credit scores in more than one way. For starters, it can affect the length of your credit history, which is a factor in how credit scores are calculated.
Can I cancel a credit card I just applied for? ›
If you decide shortly after applying for a credit card that you no longer want the card, it may be possible to cancel your credit card application. Generally, it's only possible to cancel a credit card application before the application has been processed.
How to cancel a credit one card before activating? ›
The easiest way to cancel a Credit One card is by calling customer service at (877) 825-3242. Another way to cancel your card is to mail the request. Credit One does not offer an option to cancel online.
What happens if I cancel a credit card I just applied for? ›
While canceling a credit card right after you apply isn't the end of the world, it's not something you want to make a habit of. Once or twice is fine, but opening too many new accounts or making too many cancellations will be seen as red flags by lenders and eventually lower your credit score.
Is it bad to cancel a credit card when you get a new one? ›
It's OK to switch cards — and it's understandable that when you apply to get a big bonus you may not want to keep every card you've ever been approved for. While you should think twice about canceling a card, sometimes there's no harm in doing it.
Can I immediately cancel my credit card? ›
Clear the outstanding balance on the card: Before deciding to close the credit card, you need to clear the outstanding balance on the card. Without doing this, you cannot raise a request to cancel the credit card.
Does canceling a credit card hurt your credit? ›
Credit experts advise against closing credit cards, even when you're not using them, for good reason. “Canceling a credit card has the potential to reduce your score, not increase it,” says Beverly Harzog, credit card expert and consumer finance analyst for U.S. News & World Report.
