Card holders often blindly apply for a credit card on impulse, only to find that they cannot use it and do not go through the activation procedures. But over time, if the credit card has not been activated, the credit card will be in a dormant state and become a dormant credit card.
Can I still use my credit card when it is dormant?
As for whether a sleep credit card is available, it also depends on the validity period of the credit card. If the validity period has expired, it can no longer be used. If you want to continue using the card, you must resubmit the application. Sleep cards that cannot be used must also be canceled. You can directly call the customer service of the credit card application platform to apply for cancellation, but you must ensure that there is no debt or balance in the credit card.
What are the consequences of a dormant credit card?
1. The dormant credit card will be charged. There are mainly two fees here, one is the annual fee and the other is the card production fee. Although dormant cards generally do not charge annual fees if they are not activated, this is only for credit cards with non-rigid annual fees. For example, high-end platinum cards will automatically start deducting annual fees from the date the card is approved, regardless of whether it is activated or not. . The card creation fee is for credit cards with special craftsmanship. If not activated, the money will be directly deducted from the credit card limit.
2. Dormant credit cards affect your credit report. Because after a dormant credit card is charged, it must be repaid in full and on time, otherwise it will become overdue even if it is not activated. The direct consequence of overdue credit is a bad credit record, which affects an individual's credit qualification.
3. Dormant credit cards will generate penalty interest. It is also the consequence of being deducted. That is, after the due date, the consumption debt does not enjoy the interest-free period. In addition to the daily interest rate of 0.5%, interest will also be calculated based on the part lower than the minimum repayment amount. 5 to collect liquidated damages, and the interest will be compounded on a daily basis, and the interest will increase.
4. Dormant credit cards are at risk of fraud. If the dormant credit card is lost and discovered by criminals, they may copy the credit card information into a fake card for fraud. Since the credit card is in the name of the cardholder, if the loss is not recovered in time after fraud, the user may be required to make repayments.
In short, the impact of dormant credit cards is far-reaching. When applying for a credit card, users must consider their own needs and repayment capabilities, and do not apply for credit cards at will, otherwise it will easily lead to dormant credit cards. state.