If I choose not to activate my card.?

Question

If I choose not to activate my credit card, it shouldn't show up on my credit report right?

And after I pay it off if I do activate when the account closes will it effect my score, if I already have one card in good standing?

Answer 1

From the standpoint of a credit score, you are better off keeping the card.  Typically... if you use it once or twice a year for routine purchases and pay the bill in full your score will be a bit better then if you close the card.

But, if you decide that you do NOT want the card, then you should call and close the account yourself.  Your score is better if YOU close the account then if they do..  Then there is no question about the reason it was closed.

Remember you can get a free copy of your report once a year from the 'big three' credit agencies.  google 'credit report' and look for them (ie:  Experian)   You do not have to sign up for anything or pay anyting .  If you have a site that asks for that you have the wrong site.

Answer 2

Check your contract.  It may already be an open line of credit even if you didnt activate the card.  I got a "free blanket" with signing up for a credit card at a Patriots game.  When the card came I called and asked them not to activate and close the card.. 3 months later boom 19.99 shows up on the card and I get a bill.. I did get the charges canceled but the opening and closing did show up on my credit.  Didnt effect the score much-just got it checked for a mortgage.

Answer 3

They'll phone you or letter you to activate the card, in case its stolen. Be sure they do not raise your credit limit. If that what you not want happening.

Answer 4

Un-activated cards WILL show up on your credit report, if you applied for them.  When you sign the application, you have agreed to the terms of the card, thus the acct is opened, if application is approved.

The "activation" is just a security measure, not an "acceptance of terms".

It is true, if you close a credit acct, your FICO will take a hit. Rule of thumb is that it's much better to keep the card open and use it to establish more history. Use it occasionally (never more than 30% of the limit), and pay it off each month.

If you only have one other credit card, then this 2nd card will certainly help increase your score over time.

If this is one of...say...11 cards you have, then go ahead and close it....the effect on score would be negligable.

Answer 5

once you're approved of a card, it'll show up on your credit profile, even though you don't activate it. i've used my card online for purchases without activating it. the credit card company only requires you to activate the card so they know it has arrived to you safely.

if you activate a card, pay it off, then close the account, it wouldn't affect your score if it is in good standing.

basically, having a card open does show on your credit profile, but it doesn't lower your score as long as you pay on time, try not to go over 20-30% of the credit line, then you should be fine.

Answer 6

If you are not going to activate the (new?) card, then depending on the exact wording of the card agreement, you may need to notify them it should be canceled otherwise it will hang around on your record and they may worry it got lost in the mail.    

  Sometimes the companies send out a new card and say something like "On May 1st, your interest rate will begin to float, starting at 18%, and you will be billed for the average balance during the month.  If you wish to pay off the card under the old rates, do not use your card after May 1st.  Doing so will constitute acceptance of the new agreement."