The Credit card has become inactive? Know how to activate it again!

The credit card has become inactive? Know how to activate it again!

In today’s digital age, credit cards have become an important tool for financial transactions. They not only provide emergency funds but also make expensive purchases easy with the facility of EMI. Additionally, credit cards are helpful in building a good credit score and getting attractive rewards. That’s why people use credit cards for their everyday needs, online shopping, and other expenses.

However, some people use credit cards less or not at all to meet their daily needs, so their credit cards become dormant. Let’s understand what a dormant credit card means, and if your card has become inactive, how can you activate it again?

Meaning of dormant credit card

When you do not use your credit card for a long time, it is declared dormant or inactive. Usually, if you do not make any transaction with your credit card for six months to a year, the bank makes it dormant. This means that during this period you have not done any activity like purchase, balance transfer, or cash advance.

Disadvantages of Dormant Credit Card

• Impact on credit score: Dormant credit card can hurt your credit history, which can make it difficult when apply for a loan or new credit card in the future. A drop in credit score can lead to financial institutions giving you a loan at a higher interest rate or even rejecting your application.
• Automatic closure: If the credit card remains inactive for a long time, banks can close it. When the card is closed, it directly affects your credit history, which can negatively affect your loan application in the future.
• Loss of rewards and perks: The rewards, cashback and other benefits available on the credit card are available only as long as you use it. If the card becomes inactive, you may lose these benefits, and the reward points may also expire.

How to reactivate a dormant credit card?

If your credit card has become inactive, there is nothing to worry about. You can reactivate it. Many banks and financial institutions give you some time to reactivate the card. Let us know some easy ways to activate the credit card:

By visiting the branch:

You can reactivate your credit card by visiting the nearest branch of your bank. For this, the bank may ask you for identity verification and up-to-date KYC (Know Your Customer) details.

Using online service portal:

Nowadays many banks provide their customers the facility of credit card activation through online portals. You can reactivate the card by logging into your bank’s website.

Automatic activation:

Some banks and finance companies also provide automatic activation facility. When you make any transaction with the card, like online shopping or withdrawing money from ATM, the card gets activated automatically.

Conclusion

Credit cards are a powerful financial tool that makes your purchases and financial management easier. If your credit card has become dormant, there is no need to worry. You can easily reactivate it and also maintain your credit score. For this, you just have to make a little effort and follow the right procedures.

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