Credit Tips: How Does Credit Card Approval Without Activation Effect Your Credit Score?

Posted On: March 17, 2007

Author: USMC93
Posted: Sat Mar 17, 2007 1:45 pm
Post subject: Applied approved never activated what happens…..

If you apply and are approved but never activate a card does that count on your report? I was recently approved for a card but the limit is very low. I have no plans on activating it if it will not count against me.
Thanks again

Author: fenster
Posted: Sat Mar 17, 2007 1:59 pm
Post subject:

Activation has nothing to do with it, you applied, were approved, you now own the account whether you like it or not. Your credit scores will absolutely take 2 hits, a hard inquiry and a new account penalty. Moreover, some approved accounts hit the bureaus before they even hit mailboxes.

Activation is a security feature the banks employ to ensure the proper applicant took possession of his new card, that’s it.

The short answer is yes, it will “count against” you.

Author: USMC93
Posted: Sat Mar 17, 2007 2:59 pm
Post subject:

Thanks for breaking that down. I guess since it’s counting against me I may as well activate it since I took the hits. Maybe they can give me some love…

Thanks again for the information. I wasn’t sure exactly how that works.

My lowest line on my cards is a 3K line so I don’t know how I ended up with such a small line.

Thanks again for the info fenster!

Author: hdporter
Posted: Sat Mar 17, 2007 8:49 pm
Post subject:

The only consequence I can see as a result of non-activation is that utlimately the bank may close the account. If that closure shows up as being by “credit grantor” rather than “consumer”, that can be a modest adverse strike against you.

As indicated, all other impacts are identical — inquiries have posted and the credit line is reported when the account is opened (not after it’s been activated).

Labels: Not Activating an Approved Credit Card