There are two main dangers of canceling an unactivated credit card:

1. Impact on loans

As long as you apply for a credit card, even if it is not activated, it will appear in your credit report Credit card information is also recorded in detail, such as approval time, currency and initial amount. Generally speaking, banks will consider the credit limit based on the total amount of all credit cards of the cardholder. Once a cardholder applies for too many credit cards, although they are not activated, they will also account for part of the total credit. Banks may even deny a loan if the cardholder has credit check issues.

2. Annual fee overdue

For different types of credit cards, different banks have different automatic cancellation dates. Generally speaking, ordinary cards may be automatically canceled after one year, but higher-level cards such as gold cards and platinum cards will not be automatically canceled and will only enter a dormant state temporarily if not activated. Banks usually charge credit card holders a certain annual fee.

If it is a high-end card such as a gold card or platinum card, a certain amount of annual fee will be charged regardless of whether it is activated or not. Failure to pay the annual fee on a credit card will also be considered overdue by the bank. If the cardholder has an overdue record, the overdue record will be kept in the personal credit report for 5 years, but the credit card record only shows the credit report for the past 2 years. If the cardholder continues to use the credit card after the expiration date and maintains a good repayment record, the good record can be used to cover the bad record. However, if the account is canceled after the expiration date, the bad record will be retained for 5 years.