What are the consequences of not opening a credit card?

Failure to open a credit card may cause the credit card to be reduced, or it may be stolen. In addition, some cards may not be activated. Charging annual fees can easily lead to overdue payments.

1. Leading to credit card limit reduction

For banks, the total credit limit of credit cards is limited. If the credit line that has been granted is not fully used, it will affect the efficiency of bank funds. Therefore, some banks will reduce the limit of credit cards that are not used within a certain period of time.

2. Risk of fraud

If the credit card is not activated after being placed, or the card is lost, there is a hidden risk of activation and fraud by others.

3. Impact on personal credit report

Once a credit card is approved, it will appear on the personal credit report regardless of whether it is activated or not. The total number of individual card holders and total credit limit will change accordingly. Once the number of cards held and the credit limit are too high, it will affect the bank's credit review.

4. Annual fees lead to overdue fees

Some cards do not have an annual fee if they are not activated, while some cards charge an annual fee if they are not activated. The cardholder does not know and does not pay the annual fee. , and eventually become overdue, which will have an impact on subsequent card applications and loans.

5. Affects the approval rate of future card applications

If you hold multiple unactivated credit cards, when you apply for a credit card again, the bank may think that you do not really need the credit card and be rejected. The probability is also greatly increased.

Is there any impact if you don’t activate a credit card after applying?

For most credit cards, there is no impact if you don’t activate it after applying. Most banks adopt the policy of "no annual fee if the credit card is not activated", but some banks' platinum cards and customized cards will also charge annual fees if they are not activated. Cardholders need to make a detailed analysis based on the specific situation.

The credit card can be used normally after it is activated. If the cardholder does not want to use the credit card, he does not need to activate it. The cardholder has the right to choose. Cardholders need to fully consider before applying for a credit card and decide whether to use the credit card based on their own independent judgment.

If a cardholder frequently applies for credit cards but does not open each credit card, it will have an impact. After the cardholder applies for a credit card, the postage is paid by the bank. Banks obtain income from handling fees when applying for credit cards for cardholders. Frequently applying for credit cards but not opening every credit card will cause losses to the bank's interests.

When the bank's profits are lost, the cardholder's ability to apply for a loan or credit card again will be affected. Since there is no limit to the number of credit card applications, cardholders may apply for multiple credit cards.

After the cardholder applies for a credit card, it is best to activate it. If you no longer want to use the credit card, you can cancel the credit card. Don’t let the bank mistakenly think that the cardholder is applying for a credit card maliciously.

What will happen if you fail to apply for a credit card? These impacts cannot be ignored

Many people do not activate a credit card after applying for it, because they really do not need it in life. They think that as long as they do not activate it, There will be no adverse effects. In fact, this idea is extremely wrong. Although applying for a credit card and not using it will not affect your credit report, there are several impacts that cannot be ignored. So what will happen if you apply for a credit card but do not open it?

1. Affecting the bank’s trust in you

Failure to apply for a credit card will not stain your personal credit report, but it will actually reduce your integrity with the bank. If you fail to apply for a card multiple times, the bank will determine that you have maliciously applied for a card. Every time you apply for a credit card, the bank will check your credit information in the credit information system. This operation record will be retained in the credit information system. If the bank finds that other banks check your credit information records too frequently, it may think that you have High risk, resulting in card rejection.

2. The additional fees will still be collected

What will happen if the credit card application is not opened? Many high-end credit cards have a mandatory annual fee. For example, China Merchants Bank's most popular ELLE credit card - Jing Boran Edition. With this credit card, regardless of whether you open the card or not, as long as you successfully apply for the card, you will be charged a 100 yuan fee. When applying for a credit card, remember to understand the charging standards of the credit card, and do not blindly believe the deceptive remarks of some salesmen, "You can apply for a credit card without opening a card, and there will be no annual fee." You should consult the bank staff for details.

3. The credit card is activated by others

What will happen if the credit card application is not activated? It is very likely that the card will be stolen by someone with evil intentions. It's possible that your credit card has been maxed out without you even realizing it. You won't find out until the bank calls you for payment, and it may already be too late. It is very important to protect your personal privacy. It is recommended that you don’t apply for a credit card if you don’t need it.

What will happen if the credit card application is not opened? The above points cannot be ignored.

What will happen if the credit card is not opened?

1. If the credit card is not opened, if it is an ordinary card with no charges, then it will not have much impact. It will not be used for a long time. It becomes a "sleeping card". As long as the personal information is not stolen by others, the identity is not used to open the card or the card is stolen, it will be fine.

2. If the credit card is a special card that charges a certain processing fee for the core card, the processing fee will also be included in the first installment of the credit card if the card is not opened. Failure to repay on time will result in overdue payment, which will affect your personal credit report and also bring about a series of adverse effects.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretations of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

On May 25, 2021, the Supreme People’s Court issued and implemented the “Regulations of the Supreme People’s Court on Several Issues Concerning the Trial of Bank Card Civil Cases”.

What are the consequences of applying for a credit card but not opening it?

1. After the credit card is successfully approved, there will generally be no fees if the credit card is not opened (activated), but it may affect your personal credit report because All credit cards you apply for will be on your credit report.

2. Therefore, inactive credit cards also occupy the number of credit cards and credit limits that individuals can apply for.

3. Generally speaking, as long as the credit card is activated within the validity period, the credit card can still be used normally, and there will be no annual fee if it is not activated (activated). If the credit card is not opened (activated), it will not be automatically canceled. It will be automatically invalidated after the validity period expires.

4. However, some special credit cards, such as higher-level platinum cards, will also charge annual fees if they are not activated. However, charging annual fees if the credit card is not activated is a special situation and will generally be notified in advance.

5. If you do not want to use your credit card after it is successfully approved, you must first confirm whether there will be an annual fee. If there is an annual fee, you can cancel it.

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What are the impacts of not opening the credit card after applying?

1. Failure to activate a credit card after application may incur annual fees. Each bank has different charging standards for unactivated credit cards. Some stipulate that no annual fee will be charged if the credit card is not activated, and some stipulate that if the credit card is not activated, no annual fee will be charged in the first year. Most banks stipulate that if the credit card is not activated, annual fees will be charged from the second year. Charges incurred if the credit card is not activated will be recorded on the user's account in the form of arrears.

If the cardholder is in arrears for a long time, he will not only have to pay penalty interest and late payment fees, but may also leave a negative credit record;

2. 2. There is a possibility of credit card fraud. Users will not use their credit cards unless they activate them. Most people leave unused credit cards randomly, which makes it easy for them to be stolen. Once a credit card is stolen by criminals, it will cause consequences to the cardholder. Economic losses;

3. 3. If the cardholder wants to apply for a credit card from the same bank again, it is very likely that the bank will reject it, and the difficulty of applying for a credit card will increase. After a user applies for a credit card, regardless of whether the credit card is activated or not, the record of the user's credit card processing will be seen on the personal credit report. If the user frequently applies for a credit card but does not activate it, then the user will apply for a credit card again or apply for a loan from the bank. When the bank checks the applicant's personal credit report, it will see the user's card application information. The bank may think that the applicant has little demand for card application or has integrity issues, and may reject the user's application.

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This is the end of the introduction.