What will happen if you apply for a credit card but never use it? There may be these effects

Banks do not require cardholders to use the card after they apply for a credit card. Therefore, many people get a credit card and feel that there is no need for it, so they put it aside and do not use it. This is short-term. There may be no problem within a certain period of time, but if the card is not used for a long time, it may have various impacts on the cardholder. The most common ones are the following:

1. Impact on credit:

This is mainly caused by credit card charges. The charges include two aspects. One is the cost of payment for special cards, and the other is the rigid annual fee for high-end cards. These fees apply regardless of whether the card is opened or not, and whether the card is used or not. They are all deducted directly from the credit card limit and included in the first installment of the bill. You must repay on time, otherwise your credit will be damaged first if it is overdue.

2. Impact on card use:

If you apply for a credit card and never use it, and there is no transaction record for more than 6 months, it will be easily controlled by the bank, and you may not be able to use the card again. If you make a purchase or withdraw cash, you will be in a semi-dead state. Having a card means not having a card. Fortunately, you can apply to the bank for reactivation.

3. Difficulty in raising the limit:

Many people think that if they don’t use their credit card often, the bank will take the initiative to raise the limit for customers’ consumption, but in fact this situation is relatively rare. On the contrary, if you don't use the card all the time, it will be very difficult to increase the limit. After all, the bank conducts a comprehensive evaluation based on the user's credit conditions and card usage. If you don't use the card, the bank will feel that there is no demand, and it is a waste to give too high a limit.

4. Easy to derate:

This is not alarmist, indeed some banks will do this. As early as last year, China CITIC Bank issued an announcement on its official website that it would reduce the credit limit of credit cards that have not generated any transaction records for more than 6 months.

The above is the relevant introduction to "What will happen if you apply for a credit card and never use it". In addition to the effects introduced above, there is also the risk of credit card fraud if you never use it. Therefore, if you really don’t want to use the card, in order to avoid risks, it is recommended to cancel it as soon as possible.

Will not using a credit card affect my personal credit report?

There will be an impact, annual fees will be charged, and personal credit will be affected.

If you really don’t want some credit cards, it’s very simple. Call the bank’s credit card hotline to cancel the card. After canceling, be sure to cut the card to prevent theft.

Be sure to apply for a credit card based on your own needs. Do not blindly apply for a credit card because of the inducement of a salesperson or the bewitchment of some intermediaries. When applying for a credit card, be sure to choose a bank outlet or one with official authorization from the bank. Third Party Agencies.

1. Annual fees are charged

Generally, if the Gold Card is not activated, the bank will not charge an annual fee, but for the Platinum Card, the annual fee will be charged regardless of whether you activate the credit card. Take it as it is. Therefore, don’t take it for granted that there will be no annual fees if you apply for a credit card but don’t activate it. And although most banks stipulate that no annual fee will be charged in the first year for unactivated credit cards, annual fees will be charged in the second year. Fees incurred if the credit card is not activated will be charged to the cardholder's account in the form of credit card debt. If the payment is not made on time, high interest and liquidated damages will be incurred, and personal credit will be affected.

2. Personal credit is affected

After you apply for a credit card to the bank, the bank will check your personal credit report. This record will be retained in your credit report system. If If you apply for too many credit cards without any usage records, the bank will think that you are applying for the card maliciously. Moreover, your total number of cards and total credit limit will change. When you really need a credit card, it is easy to be rejected by the bank.

After applying for a credit card, regardless of whether it is activated or not, it will be recorded in the personal credit reference center of the central bank. If there are too many credit cards in your account, the bank will consider your debt ratio and repayment ability when you apply for a card next time, which will affect whether the bank approves your credit card application and the credit card limit. Moreover, if you apply for a credit card from the same bank, the bank will most likely reject your application. Therefore, if the credit card you apply for is not activated, it will affect future card openings.

3. Cause information leakage

If there is a person with bad intentions around you, it is very likely that after he knows your personal identity information, he will activate it under your name, because now the credit card Activation is very simple, you only need to know your ID number and hold your phone to activate it in one minute.

What will happen if I have not used my credit card for more than a year?

The consequences of not using a credit card for one year are as follows:

1. If the credit card is not used for one year, the bank will freeze the user's credit card. The user can only pay off the debt in time and explain the situation to the bank. , the bank will unfreeze the credit card;

2. If the credit card is not used for a year, the credit card will generate an annual fee, thinking that the user has no business and has not met the annual fee exemption standard. Repay the loan on time, otherwise it will cause overdue credit, which will affect the user's future loans and credit card applications;

3. If the credit card is not used for a year, the bank will reduce the credit card limit and it will not be easy to increase the limit.

What should I do if my credit card is not used for a long time and the account is frozen?

If there is no transaction on the credit card for 36 months, the account will be frozen. The main cardholder needs to use the reserved mobile phone number to call the customer service hotline: 400-669-5566/400-669-5569, ext. Manual query, follow manual customer service prompts to unfreeze.

The above content is for your reference, please refer to actual business regulations.

That’s it for the introduction to unused credit cards.