If you receive a credit card but never activate it, there are several things that could happen. The exact consequences depend on the terms and conditions of the card issuer, as well as the laws in your jurisdiction. However, here are some common scenarios:
1. No Credit Card Activity: If you do not activate the card and do not use it for any transactions, the issuer may eventually close the account. This is because unused credit cards can be seen as a risk by the bank or financial institution. They might also charge an annual fee if they have to keep the account open without any activity.
2. Negative Impact on Credit Score: If you fail to activate the card within a certain period (usually 30 days), it could negatively impact your credit score. Some banks consider unactivated accounts as missed payments or defaults, which can lower your credit score.
3. Potential Fraud Risk: Not activating a credit card could potentially lead to fraudulent charges if someone else uses the card number before you activate it. It's important to contact the issuer immediately if you suspect this has happened.
4. Legal Consequences: In some cases, failing to activate a credit card could result in legal action from the issuer. This could include sending you a notice of default or even filing a lawsuit against you. However, these actions are usually remedied by simply activating the card and paying any outstanding balances.
5. Restricted Use: Even after activation, some credit cards may have restrictions on their use until you meet certain criteria set by the issuer. For example, they might require you to make a minimum amount of purchases or maintain a certain balance to avoid fees.
6. Early APR Charges: Some issuers may charge an early APR (Annual Percentage Rate) if you don't activate the card within a certain time frame. This is a way for them to recover costs associated with offering you the card.
7. Lost Benefits: Some credit cards offer sign-up bonuses or rewards programs that require activation within a specific timeframe. If you fail to activate the card within this window, you may miss out on these benefits.
8. Identity Theft Risks: If you receive a credit card and fail to activate it, there's a chance that someone else could use the card number to commit identity theft. Always be cautious and monitor your credit reports regularly to detect any suspicious activity.
To avoid these potential issues, it's essential to activate your new credit card as soon as possible. Most credit card companies send an activation link via email or text message when the card is issued. You can also activate the card through their website or by calling their customer service line.
In conclusion, not activating a credit card can lead to various negative consequences, including missed rewards, higher credit scores, and potential legal action. It's crucial to take proactive steps to protect your financial health and ensure that your new credit card is properly activated and managed.